A preview from the Insolvency Practitioners Association on tomorrow's insolvency statistics
Ahead of the release of the latest quarterly statistics for personal insolvencies in the UK, Charles Turner President of the IPA and partner at FRP Advisory said:
“The personal insolvency statistics are likely to reveal that bankruptcy numbers are at their lowest level for a decade and well down on the same quarter last year. Even the more recent Debt Relief Order process is showing a continuing decline on the peak reached in the second quarter of 2012. However IVAs are likely to show an increase on the last quarter and there is some evidence of an upward trend.
Before everyone concludes that this is another good news story it is worth bearing in mind that the explosion in the consumer credit levels which helped to fuel High Street spending in the noughties before recession kicked in, resulted in the record levels of personal insolvencies which peaked in 2009/ 10. It should not be forgotten that the anticipated and sought after return of the consumer to the High Street, armed with an array of plastic, does have serious potential consequences particularly while income levels for many remain depressed and the cost of basic items such as fuel continue to increase. Consumers and lenders should remain cautious. “