- Monday, 17 May 2010Bankruptcy numbers fell by three per cent in the first three months of 2010 compared to the same period last year, according to the Ministry of Justice.
About 16,348 individual
bankruptcy petitions were made in the first quarter of 2010 and 2,177 company winding up petitions due to financial difficulty were made, a decrease of 20 per cent compared to the first quarter of 2009.
It is believed that the introduction of debt relief orders in April 2009 may have contributed to the decline in bankruptcies.
These orders allow those with little surplus income, no personal assets exceeding £300 and debt worth less than £15,000 to pay off what they owe without resulting in
bankruptcy.
Chris Nutting, director of personal insolvency at KPMG, the audit, tax and advisory firm, said: "Whilst the UK is technically out of recession, the harsh reality is that many people are still living beyond their means. History shows that personal insolvencies will continue to rise for some time after the recession finally ends."
He warned that personal insolvency figures may break records by the end of 2010 because of cuts in public spending and an increase in taxes, which the new government is expected to introduce.
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