THE NUMBER of people falling into personal insolvency is likely to drop to its lowest level in the UK since 2005, a leading accountancy firm said yesterday.
Around 25,000 individuals entered an insolvency procedure in the first three months of the year, RSM Tenon said – the lowest quarterly level since early 2008.
The number is a considerable 16 per cent lower than during the same period in 2012, it said.
“Record low interest rates, in place for more than three years, have helped homeowners,” said RSM Tenon’s Mark Sands.
A personal insolvency does not necessarily involve being declared bankrupt, the firm explained. An insolvent individual can choose to take out a debt relief order or enter into an individual voluntary arrangement, known as an IVA.
Yet the number of IVAs is falling, due to job market uncertainty.