In spite of a tough economic climate insolvency rates dropped by 11.3% in 2011 according to latest figures from the Insolvency Service.
A total of 119,850 people were declared insolvent over 2011, 11.3% less than in 2010, and the lowest number since 2008. The figures may suggest that consumers are taking greater control over their finances.
The number of companies going bust increased by 1.3% over the same period compared with 2010.
There are three main forms of insolvency: Bankruptcy, Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs). The figures released by the Insolvency Service suggest a shift in the type of insolvency most commonly declared.
The number of bankruptcies in 2011 fell by 29%, a disproportionate number to overall decline. The number of IVAs was down 3% too, but DROs shot up up 15% on 2010 figures.