Friday, 27 May 2016
In the Q1 2016 Insolvency Market Trends, we commented on the current ‘period of significant change in the personal insolvency market’. In the coming months we will call out specific insight which demonstrates how the market has changed and how this transformation will impact creditors and how they vote on and manage IVAs and PTDs.
Monday, 07 March 2016
It’s a period of significant change in the personal insolvency market. FCA regulation has increased the requirements on debt solution providers, the profile of consumers accessing debt solutions continues to change and since the turn of the year we have seen consolidation in the IVA market, a trend we expect to see continue through 2016.
Tuesday, 10 November 2015
Recent media reports based on data from the Insolvency Service headlined on the fact that insolvencies have risen for the first time in a year, with a small uplift of 2.8% between Q2 and Q3. However, the bigger picture shows that the overall total remains lower than the majority of the past decade and highlights an actual reduction of around 19% on last year.
Interestingly this new data does suggest that we’re beginning to move away from traditional patterns as Q2, which was historically the largest period in the year for insolvencies, actually saw a fall and this trend continues into Q3.
Friday, 31 July 2015
Volumes continue to show decline over the medium-long term, across all insolvency solutions in Q2 2015.
As is always observed Q2 volumes have seen a small increase on Q1, however this short-term seasonal trend is less pronounced than in previous years.
Increasing market regulation in consumer advice and solutions continues to manifest as a period of volatility for some solutions such as the IVA. However we are beginning to see this disruption settle down.
Monday, 18 May 2015
Insolvency volumes have continued to decline in Q1 2015 (Figure 1). Whilst the first quarter usually sees a seasonal reduction in volumes, the drop off in 2015 is more pronounced than in previous years, down 23% on 2014.
Tuesday, 03 March 2015
2014 finished with just under 110,000 insolvencies, down 6% on 2013. Bankruptcies and Debt Relief Order volumes continued to fall, with Bankruptcies being 17% lower in 2014 than in 2013, and DROs falling 3%.
Thursday, 04 December 2014
Q3 finished with just under 28,000 insolvencies, down 6% on Q2 despite Trust Deed volumes being the highest of the year so far with September the biggest month since January.
Monday, 16 June 2014
May volumes were 5% down on April insolvencies, with all solutions, except DRO's below the previous month.
Monday, 31 March 2014
February insolvency volumes were up 2% on January driven mainly by a 23% increase in IVAs with Sequestrations also showing strong growth.
Monday, 24 February 2014
January followed the expected trend with IVA volumes down on December whilst bankruptcies and debt relief orders were up.
Friday, 31 January 2014
2013 finished with just under 117,000 insolvencies, the first year below 120,000 since 2006.
Monday, 23 December 2013
Volumes across all insolvency solutions were down 7% in November when compared to October 2013, including a double digit decline in both Trust Deeds (-22%) and Sequestrations (-16%).
Wednesday, 04 December 2013
As predicted last month, October saw strong volumes with all solutions above September levels (overall +14%).
Thursday, 31 October 2013
At the end of Q3, overall insolvency volumes had fallen 11% behind 2012. This was driven largely by a 23% fall in bankruptcies, although all solutions are below 2012 levels.
Wednesday, 09 October 2013
August was a strong month for IVA volumes with 4,500 cases, bringing the year-to-date figure ahead of 2012, albeit only slightly, for the first time since January.
Wednesday, 04 September 2013
In line with the typical seasonal trend, volumes of all insolvency solutions rose in July. This is of course in contrast to the overall trend, with volumes of all solutions having fallen over the last 12 months (by between 5% and 32%).
Monday, 05 August 2013
We now have the opportunity to review the full first half of 2013 and, as predicted at the start of the year, the overall volume trends across the board in the insolvency market are downward. All forms of insolvency are below the corresponding level from H1 2012, with an overall decrease of 14%. If this trend continues, the full year volume across England and Wales would be below 100,000, with a total including Scotland of around 110,000 – both record lows.
Wednesday, 10 July 2013
Insolvency volumes have risen on a rolling basis over the last three months, but the reality is that this is a purely seasonal trend, and a similar pattern can be observed each year on a historical basis.
Tuesday, 04 June 2013
Year to date volumes of all insolvency solutions are now below the corresponding period in 2012. The largest decrease has been in Bankruptcies in England and Wales, and the equivalent Sequestrations in Scotland.
Thursday, 25 April 2013
There was little short term variation in insolvency volumes from February to March. The only movement was a 44% month-on-month increase in Trust Deeds, but this is in line with the expected seasonal pattern, and is in comparison to a very low volume in February.
Tuesday, 26 March 2013
Looking at the wider picture shows that overall volumes are down around 10% on both a rolling 12-month basis and a year-to-date basis (compared to 2012).
Tuesday, 05 March 2013
The usual seasonal pattern in insolvency numbers was observed across all solutions in January, with an increase in the volume of Bankruptcies and Debt Relief Orders, and a decrease in the number of IVAs.
Friday, 08 February 2013
The final UK volumes for 2012 show that consumer insolvencies are now at their lowest level since 2008.
Thursday, 18 October 2012
The most significant change in Q3 was the fall in volume of Sequestrations.
Friday, 21 September 2012
The volume of DROs has now matched or exceeded those of bankruptcies in 5 out of the last 6 months, and Q3 is looking set to be the first complete quarter where DROs outnumber bankruptcies.
Tuesday, 11 September 2012
In Scotland, July’s volume of Sequestrations was the lowest in over 4 years. This contrasts with the very high volume in May, and combined with the fact that the fee for a debtor-petitioned Sequestration rose from £100 to £200 on 1st June, this gives clear evidence of a rush by debtors to avoid this increase.
Monday, 16 July 2012
Q2 has shown a continued contrast between trends in England/Wales and Scotland, with modest growth in insolvency volumes north of the border not mirrored elsewhere.
Wednesday, 20 June 2012
More individuals entered DROs in May 2012 than entered Bankruptcy. This has never happened before, and although trends suggested it would, it remains a significant landmark in the continuing shift away from Bankruptcy – which has gone from the most popular to least popular insolvency solution in under 2 years.
Monday, 21 May 2012
Overall Insolvency volumes were down 12% from March to April, with falls in most solutions. This is expected at this time of year, with the Easter holiday period meaning a shorter working month.
Monday, 30 April 2012
For the first time ever, March saw the volume of Debt Relief Orders almost above that of Bankruptcies. This is in line with the prediction that DROs will outnumber Bankruptcies for the first time in 2012, and underlines the shift in the mix of insolvency solutions accessed by consumers.
Monday, 19 March 2012
For the second month in a row, Trust Deeds were significantly higher than this time last year. As volumes were high in the latter half of 2011 as well, it appears that this is a trend, rather than just a 'blip'.
Monday, 20 February 2012
Month to month changes from December to January give little early indication of long-term trends through 2012 as volumes are strongly influenced by the Christmas period.
Although bankruptcies rose from their low in December they were actually 25% below 2011 volume indicating that the trend observed throughout 2011 will continue. In contrast, IVAs showed a 20% fall from December but a 7% rise versus 2011 – this may be an early indicator that we will see growth in the IVA market in 2012.
Saturday, 31 December 2011
Full year Insolvency volumes for 2011 were 119,000 in England & Wales, and 20,000 in Scotland. This represents a 13% decrease in England & Wales, and a 3% overall decrease in Scotland. It is important to remember that this decrease is in comparison to record high insolvency levels in 2010, and that volumes remain significantly above pre-2009 levels.
Tuesday, 20 December 2011
Seasonality had an impact on November volumes for some insolvency solutions, and similar effects will mean lots of volatility, and ultimately lower overall insolvency volumes over the next 3 months. DROs showed an 11% rise from October to November, while Trust Deeds showed a 20% decrease. Both these effects fit trends from previous years and are therefore seasonal, rather than indicators of any longer term trends into 2012.
Thursday, 01 December 2011
In 2011 we have seen a change in the mix of insolvency solutions. While Bankruptcy volumes have fallen by nearly 30%, IVA volumes have fallen by only 8%, and DRO volumes have grown by nearly 20%.
Monday, 17 October 2011
Our data shows that total insolvencies in England and Wales in Q3 2011 were 29,700. This was 12% behind the same period for 2010.
Monday, 19 September 2011
August was the first month of the year in which IVA volumes were higher than in 2010. This is a good indicator that the 12-month rolling total of IVAs may well now start to rise (having previously fallen to less than 49,000 compared to 52,000 during the same period in 2010). This growth should not be unexpected given the current economic conditions.
Monday, 15 August 2011
In Scotland, Trust Deeds have been above 2010 volumes for each of the last 4 months. Although year-to-date volumes are still 3% below 2010, if the current trend continues it will translate to a full-year increase.
Monday, 18 July 2011
The first half of the year has seen a decrease in overall insolvency volumes across the UK compared to 2010, and this will almost certainly translate into a full-year decrease.
Monday, 20 June 2011
In May there was an increase in all insolvency volumes compared to April, which was a shortened month due to bank holidays. Trust deeds were particularly high compared to expectations, and we will be monitoring whether this is an isolated data point or an indication of a change in the Scottish trend of volume reduction.
Monday, 16 May 2011
In April there was a 17% relative reduction across all insolvency solutions compared to March. The exception was a 10% increase in trust deeds which, as a result of a longer reporting cycle, was driven by increased volumes in March.
Monday, 18 April 2011
March saw a large seasonal increase in monthly volumes of Insolvencies, estimated at a 31% increase compared to February.
Monday, 21 March 2011
February insolvency volumes increased 24% compared to January, led by a 47% increase in IVAs and 13% increase in Bankruptcies following the seasonal Christmas and New Year lull.
Monday, 17 January 2011
Overall, the three-month trend (Nov – Jan) in insolvency volumes was 15% lower than the preceding three months. However, this is an expected seasonal trend which is seen each year, as consumers and IPs navigate the Christmas period.