Significant rise in number of individuals being declared insolvent
30 Jan 2017
The number of individuals declared insolvent rose by 13% in 2016, figures from the Insolvency Service have revealed.
90,930 people in England and Wales were declared insolvent last year – a rise of 13.1% when compared to insolvency figures from 2015.
However, the number of bankruptcies in England and Wales fell in 2016, with a total of 14,989 bankruptcy orders being recorded – a 5.4% decrease when compared to 2015.
Meanwhile, in Scotland, which utilises an alternative insolvency service, personal insolvencies rose by 7.9% during the final three months of last year.
The data also revealed that around 16,502 English and Welsh businesses entered insolvency in 2016, marking a 12.6% rise when compared to 2015.
Sarah Albon, Chief Executive of the Insolvency Service, commented: ‘Personal insolvencies increased last year for the first time since 2010, however the total was still the second lowest number in the last 11 years. It is very distressing to live with unsustainable personal debt so it is important for people to seek advice.’