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Overall personal insolvencies fell 4.6 per cent on last year.

Leading debt advisory service, Council Tax Advisors CIC, has sounded a note of caution about reading too much into recent statistics revealing that personal bankruptcies in the UK have fallen to their lowest level for 15 years due to continued low interest rates.

According to figures from the government’s Insolvency Service, there were 4,886 bankruptcy orders in the three months to September 2014, a decline of 18.7 per cent on the same period last year.

Overall personal insolvencies fell 4.6 per cent on last year. In the three months to September there were 24,837 individual insolvencies in England and Wales, which also included 6,808 debt relief orders and 13,143 individual voluntary arrangements (IVAs). IVAs as a form of insolvency have become increasingly popular in recent years and explains why they accounted for more than half of individual insolvencies, up from just under a quarter a decade ago.

Despite the fall in bankruptcies, R3, a group which represents insolvency practitioners, warned that the figures did not cover all forms of debt management plan so cannot automatically be assumed to mean that the UK’s personal debt issue is improving. Research by the group found that 44 per cent of British adults were worried about their level of debts, while one in four 25 to 44 year-olds had five or more debts.

Chris Richards. Managing Director at Council Tax Advisors CIC agreed with R3, intimating that their own dealings with people in arrears reveal that problem debt is still a real issue.

He said: ‘The fact that the number of personal bankruptcies has fallen is obviously a welcome development, but it does not mean the debt problem in this country is easing.

‘The figures revealed by R3, combined with the experiences of our own advisors show that debt is still a real issue for many people. Wages have failed to keep pace with living costs for a long time now and this has led many to fall into arrears. Taking out credit has come to be seen as a way of helping to make ends meet, when in reality it is only adding to debt problems. Things can escalate very quickly, which is indicated by the fact that one in ten of the clients Council Tax Advisors CIC now deals with have a debt problem classed as severe,’ he added.

Council Tax Advisors Community Interest Company (CIC) is a not-for-profit organisation offering free and independent advice and resolution services to those in council tax arrears or any other kind of debt. Formed in 2012 as a direct result of personal experiences with bailiffs, they are expertly placed to give advice and guidance on how best to deal with debt situations and offer long-term sustainable solutions including the organisation of repayment plans and professional mediation services.

This press release was distributed by ResponseSource Press Release Wire on behalf of Council Tax Advisors in the following categories: Personal Finance, Business & Finance, Public Sector, Third Sector & Legal, for more information visit http://pressreleasewire.responsesource.com/about.