Personal insolvencies up 4pc since the start of the year The number of people being declared bankrupt continued to run at its lowest levels in more than a decade, down 21pc on a year ago and the lowest number since winter 2002. Bankruptcies, which are often seen as a last resort, have been in general decline since the introduction of DROs in 2009, which are often dubbed "bankruptcy light." DROs - aimed at people with debt of less than £15,000 but no realistic prospect of paying it off - were down 15pc on a year ago and the lowest figure seen in almost three years. The number of IVAs has increased 6pc on the same period last year. Some experts have suggested that on the face of it, the rising proportion of people opting for IVAs and trying to pay some money back rather than simply declaring themselves bankrupt is a sign that confidence in the economy is improving. But they have also pointed out that it could be a sign that some people who have been previously juggling their debts are now finding the squeeze on their income too much to bear, which is forcing them into doing a deal with their creditors. Mr Chadwick said: "Whilst bankruptcies and debt relief orders have declined, more people are using individual voluntary arrangements to obtain relief from their debts, suggesting more people are experiencing increased creditor pressure. We believe there will continue to be an increase in personal insolvencies in the near future, with bankruptcies rising most likely in the first quarter of 2014. However, there are still many reasons for optimism. Economic growth forecasts have been upgraded recently, the Bank of England expects unemployment to fall faster than previously expected, and mortgage approvals are rising - all signs that pressure on families should begin to ease in the coming months. Some 76,763 people have become insolvent this year so far. Despite the recent uplift in the figures, if they remain broadly the same into winter it will mean the overall total for this year will come in lower than the 109,000 personal insolvencies in 2012. Last year's total was the lowest annual figure recorded since 2008. But Melanie Giles, a licensed insolvency practitioner at PJG Recovery, warned: "The Insolvency Service's numbers do not reflect the growing number of unregulated, and less formal, debt management plans out there. The growth in debt relief orders is stabilising the bankruptcy numbers and that's to be welcome, but this shouldn't obscure the fact that many households are still having a very tough time of it. When interest rates do finally rise, expect to see another surge in people going bankrupt or entering a formal debt repayment plan.