The number of individuals being declared insolvent has fallen to a ten-year low, figures from the Insolvency Service have revealed.
Some 79,965 people were recorded as being insolvent last year. This annual figure is down by almost one-fifth when compared with 2014’s total.
However, the data also reveals that personal insolvencies underwent a rise during the last three months of 2015. Additionally, the number of debt relief orders (DROs) being given out also rose in the final quarter of the year.
Meanwhile, the number of companies being declared as insolvent fell to their lowest annual level since 1989: a total of 14,629 businesses became insolvent in 2015. This number is 10% lower than 2014’s total.
This decrease has been driven by a significant reduction in the number of compulsory liquidations, which fell to its lowest annual level since 1981.
Experts have warned, however, that insolvency figures could rise during 2016, with the UK’s construction industry remaining weak, together with ongoing volatility in the stock market.
High household debt levels could also contribute to a potential rise.