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| Debt problems: Personal insolvency cases rise | Debt problems: Personal insolvency cases rise |
| (35 minutes later) | |
| The number of people being declared insolvent has risen for the first time in a year, but the total remains lower than much of the past decade. | The number of people being declared insolvent has risen for the first time in a year, but the total remains lower than much of the past decade. |
| The Insolvency Service said that 19,683 people in England and Wales were made insolvent in the third quarter of 2015. | The Insolvency Service said that 19,683 people in England and Wales were made insolvent in the third quarter of 2015. |
| This was up 2.8% on the previous three months, but down 18.5% on the same quarter a year earlier. | This was up 2.8% on the previous three months, but down 18.5% on the same quarter a year earlier. |
| Low interest rates have kept a lid on the number of people facing unmanageable debts. | Low interest rates have kept a lid on the number of people facing unmanageable debts. |
| The Insolvency Service added that the number of businesses going bust continued to fall. | |
| Some 3,539 companies entered insolvency in the third quarter of the year, 4.4% down on the previous three months and 10.2% lower than the same quarter last year. | |
| Bankruptcy drop | Bankruptcy drop |
| The Insolvency Service said that the quarter-on-quarter rise in individual insolvencies was driven by an increase in Individual Voluntary Arrangements (IVA). | |
| An IVA is a deal between somebody in debt and their creditors, overseen by an insolvency practitioner. It is regarded as having less stigma and less chance of losing a home than bankruptcy, but involves paying some debts in one go. | An IVA is a deal between somebody in debt and their creditors, overseen by an insolvency practitioner. It is regarded as having less stigma and less chance of losing a home than bankruptcy, but involves paying some debts in one go. |
| The number of people being made bankrupt fell to 3,857 in the third quarter of the year. | The number of people being made bankrupt fell to 3,857 in the third quarter of the year. |
| This was the lowest level for 25 years. | This was the lowest level for 25 years. |
| The total could fall further, as in October rules changed so the minimum debt a creditor must be owed in order to be able to petition to make someone bankrupt increased from £750 to £5,000. | The total could fall further, as in October rules changed so the minimum debt a creditor must be owed in order to be able to petition to make someone bankrupt increased from £750 to £5,000. |
| Bankruptcy and alternatives | Bankruptcy and alternatives |
| Bankruptcy: The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets, including your house, to pay something to the creditors | Bankruptcy: The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets, including your house, to pay something to the creditors |
| Individual Voluntary Arrangement (IVA): A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go | Individual Voluntary Arrangement (IVA): A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go |
| Debt Relief Orders: Introduced in April 2009, these allow people with debts of less than £15,000 (£20,000 since October 2015) and minimal assets to write off debts without a full-blown bankruptcy | Debt Relief Orders: Introduced in April 2009, these allow people with debts of less than £15,000 (£20,000 since October 2015) and minimal assets to write off debts without a full-blown bankruptcy |
| Loan growth | |
| Separate figures from the Bank of England show that unsecured borrowing by individuals continues to rise. | |
| This was mainly in the form of personal loans, which rose by £1bn in September. | |
| Borrowing on credit cards rose by £288m last month, the Bank said. | |
| This was in line with the average of the previous six months. |