Wednesday 10th of November 2010
The latest personal insolvency statistics do little to provoke optimism about the state of people's finances, it has been suggested.
Ian Boden-Smyth, spokesperson for the UK Insolvency Helpline, was commenting after the Insolvency Service released figures concerning how many people had been declared as unable to cope with their debt in the third quarter of this year.
The statistics revealed creditors' voluntary liquidations and compulsory liquidations in England and Wales were down 2.2 per cent on the previous three months (seasonally adjusted).
Mr Boden-Smyth said the period included the school summer holidays, which is typically a time when people do little to resolve their financial problems.
"There isn't really any reason to jump for joy and say that the country is sorting itself out," he added.
After another quiet three months in the run up to Christmas, the first quarter of 2011 will see a rise in the number of personal insolvencies, he predicted.
Despite a decrease in the number of people entering personal financial liquidation in the last three months, the Insolvency Service statistics did show there had been an increase in the number of people beginning an individual voluntary arrangement.
By Chris King
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