Number of IVAs taken out falls
Published On 5 August 2007
There was a slight decrease in the number of individual bankruptcies and IVAs taken out in the second quarter of 2007, new research suggests.Data from the Insolvency Service show that there were 26,956 individual insolvencies in England and Wales in the second quarter of 2007 - 8.1 per cent fewer than in the first three months of the year.
These were made up of 16,258 bankruptcies and 10,698 Individual Voluntary Arrangements (IVAs).
This means that the number of IVAs taken out in the second quarter of 2007 was down 15.1 per cent on earlier in the year and 0.7 per cent on last year's figure for the corresponding quarter.
While the figures show that some people are managing their debt without the need for IVAs, Rod McKee, head of financial capability at the ifs School of Finance, said that it still showed more education about personal finance was needed in the UK.
He explained: "The insolvency figures released today again highlight the need to ensure people have sufficient financial skills to make informed financial decisions.
"Equipped with such skills the number of people who find themselves facing unmanageable debt problems will reduce considerably."
Figures released by Credit Action show that personal debt in the UK reached £1.345 trillion by the end of June.
