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Q3: slight increase in IVAs; big increase in DROs

The Insolvency Service has just released its statistics for the third quarter of 2009, revealing a small increase in IVAs (in England and Wales), a small decrease in bankruptcies - and a huge jump in DROs (Debt Relief Orders).

The statistics show that 12,390 people entered an IVA in the third quarter of the year - a small increase on last quarter`s figure of 12,225, and significantly (20.9%) more than the 10,251 IVAs recorded in the third quarter of 2008.

There was also little change in terms of bankruptcies. 18,347 people were declared bankrupt in Q3 2009 - fewer than the 18,870 declared bankrupt in the second quarter of the year, but still 6.4% more than in the third quarter of 2008.

By far the most significant change was in DROs - the new form of insolvency which was introduced on April 6th this year. In Q2, 1,978 people entered a DRO, but in Q3, this number more than doubled to 4,505.

Altogether, the number of individual insolvencies rose from 33,073 in Q2 to 35,242 in Q3 - a figure 28.2% higher than the one we saw in Q3 last year.

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