The Insolvency Service has published its latest figures which indicates personal insolvencies in England & Wales fell by 18% to 6,816 in February 2021 compared to January’s figure of 8,321, and were 21% lower than February 2020’s figure of 8,574.
The number of bankruptcies in February 2021 was 898, while the number of Debt Relief Orders was 1,389. Both were 42% lower than in February 2020. The bankruptcies were made up of 813 debtor applications and 85 creditor petitions.
There were, on average, 6,138 IVAs registered per month in the three-month period ending February 2021, 11% higher than for the three-month period ending February 2020.
Colin Haig, President of insolvency and restructuring trade body R3 and Head of Restructuring at Azets said “The month-on-month reduction in personal insolvencies is down to a slump in Individual Voluntary Arrangement numbers.”
“However, it’s worth noting that both bankruptcies and Debt Relief Orders – which may be indicators of more severe debt levels than IVAs, which tend to be more market-driven – rose by 14% compared with the previous month.”
“Government support has been and continues to be a lifeline for many – and has stemmed rather than stopped the flow of insolvencies we would expect to see in this kind of economic climate.”
“Now is the time for them to make the most of the Government’s decision to extend its support packages and plan ahead for when these measures end, and for anyone worried about their personal or business finances to seek advice about resolving their situation.