2010.11.0508:54:00UTC+00England/Wales Individual Insolvencies Lowest Since Q2 2009

The number of individual insolvencies in England and Wales dropped to the lowest level since the second quarter of 2009, Insolvency Service reported Friday.

Individual insolvencies fell by 2.3% quarter-on-quarter and 3.7% year-on-year to 33,935 in the third quarter. In the second quarter, there were 34,743 individual insolvencies. The number had hit a record high of 35,682 in the first quarter of this year.

There were 13,907 bankruptcies in the third quarter, down 24.2% from the previous year, and 12,960 individual voluntary arrangements. Debt relief orders totaled 7,068.

"The decline in the number of individual insolvencies is obviously good news but the reality is that many people remain at risk, particularly if economic activity slows markedly as tighter fiscal policy bites," IHS Global Insight's Howard Archer said.

The Insolvency Service also reported that the number of company liquidations fell by 2.2% sequentially and 13.9% annually in the third quarter to 3,974. Hence, the number of company liquidations fell to the lowest level since the second quarter of 2008.

Compulsory liquidations totaled 1,126, down 3.2% sequentially and 12.6% over a year ago. Creditors voluntary liquidations amounted to 2,847.

Ongoing British economy recovery and lower unemployment has helped to limit company and individual insolvencies, respectively. Archer said the number of companies failing is likely to moderate only slowly, reflecting an expected slowdown in GDP growth.

U.K.'s gross domestic product rose 0.8% in the third quarter following 1.2% increase in the second quarter.

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