Personal Insolvencies continue to fall

HAMISH_MCTAVISH

30,162 personal insolvencies in Q1 2011.

Down 1.7% on Q4 2010.

Fourth consecutive quarterly fall.

15.5% down year on year.

Good news. :beer:

abaxas

Good to see people actually trying to pay it all back.

lemonjelly

It'll be down because Debt Relief Orders are not included in the Insolvency figures though.

lemonjelly

Further to the above, when introduced, DRO's would have caught approx 11-12% of people who ended up going bankrupt.

As the threshold for DRO's is lower, and the costs are also lower, it is reasonable to assume that more people will have gone for DRO's.

If you add DRO's to the number of bankruptcies, you will, no doubt see that insolvency in one form or another has increased, not decreased.

(NB I did look on the insolvency service website for DRO stats, but they appeared to have stopped publishing that information post april 2009. I wonder why that could be...?)

purch

Good news

What is ?

That 30,000 people became insolvent :eek:

ultrawomble

lemonjelly wrote: »

(NB I did look on the insolvency service website for DRO stats, but they appeared to have stopped publishing that information post april 2009. I wonder why that could be...?)

I found some numbers here:

http://www.debtrelieforders.com/blog/624122-bankruptcies-down-dros-up-in-first-quarter-2011/

Full data set here:

http://www.insolvency.gov.uk/otherinformation/statistics/201105/index.htm

Graham_Devon

Looking at that first link, it seems insolvencies, when you include DRO's are simply static.

As insolvencies have fallen, at the very same time, DRO's have risen, by nearly exactly the same numbers as insolvencies have fallen.

julieq

Erm, Graham, they're not static. The top line of the graph is the total of the other three datasets and is clearly falling. If you look at the second link it gives the data in tabular form.

the_flying_pig

The number of personal insolvencies is a very, very important leading indicator of pwoperdee prices.

Based on this evidence, this time next year I should think that Hamish’s houses will be worth at least, oh, a million pounds. Each.

julieq

Graham, please explain how the first link shows that the number of DROs is equal and opposite to the number of insolvencies, which appears to be the claim you're making.

You've interpreted the numbers wrong again. The total number of insolvencies (including DROs) is shown as falling in the link you cited, both from the last point totalled and also over a longer term as a trend.

Generali

julieq wrote: »

Erm, Graham, they're not static. The top line of the graph is the total of the other three datasets and is clearly falling. If you look at the second link it gives the data in tabular form.

It is true to say that insolvencies have fallen back in the last quarter but it's going against a trend going back pretty much to the Labour Government getting in.

It is startling the extent to which insolvency in all forms has risen since the late 1990s. I wonder to what extent the drop in insolvency has coincided with the unavailability of credit over the past 3 years. After all, if you can't borrow you can't go bust!