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The Insolvency Service (IS) have released the second quarter (2009) insolvency statistics. The figures make grim reading on the personal side of the subject. There were 33,073 individual insolvencies in England and Wales in the second quarter of 2009. The IS notes: "This was an increase of 27.4% on the same period a year ago. This was made up of 18,870 bankruptcies (which were up 15.3% on the corresponding quarter of the previous year), 12,225 Individual Voluntary Arrangements (IVAs), (which were up 27.4% on the corresponding quarter of the previous year) and 1,978 Debt Relief Orders (DROs)."
The most interesting element in relation to the new personal insolvency figures is the DRO, which was introduced in April 2009. A significant number of debtors have already availed themselves of this 'bankruptcy-lite' procedure. The BBC have reported on the issue, as have the Independent and the Times.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...