Insolvency Statistics for 2nd Quarter 2012


The government’s insolvency service released their statistics for the second quarter of 2012 and the figures are as follows:

There were a total of 27,390 individual insolvencies in England and Wales for the second quarter of 2012. These insolvencies were made up of bankruptcies, IVA’s, and Debt Relief Orders/DRO’s.

This number represents a decrease of 10.2% in the number of insolvencies from this same time last year, 2011.

The insolvencies are comprised of 8,088 bankruptcies, 7,956 Debt Relief Orders, and 11,346 IVA’s.

This represents a 27.1% decrease in bankruptcies from last year, a 9.6% increase in DRO’s over last year, and a 6.6% decrease in IVA’s over this time period last year.

DRO’s which were introduced in April 2009, are now comparable in numbers to bankruptcies. Which shows they have filled a need for those who are insolvent but have less than 15K in debts and no assets.

In bankruptcies, 6,430 were made by the debtor, leaving 1,658 of the bankruptcies being made by creditors. So lest we believe creditors are not making people bankrupt.

The trend is being seen that bankruptcies are now lower in numbers than IVA’s for the past five (5) quarters. Which would seem to indicate people are choosing this option over bankruptcy more, which would also make one think that possibly people with property or other assets they may lose in bankruptcy are seeking out an IVA.