There were 30,162 personal insolvencies in the first quarter, down 1.7% on the previous three months and the fourth consecutive quarterly fall.
The figures from the Insolvency Service showed the number was 15.5% down on the same period a year earlier.
The number of people choosing an Individual Voluntary Arrangement (IVA), which allows an official deal to be struck between the debtor and creditors, also fell compared with a year ago.
There were 10,835 IVAs declared, which was 8% lower than the first quarter of 2010. However, the new style of insolvency for those with relatively low debts – known as a Debt Relief Order – grew in number to 6,788.
This was 20.3% higher than the same quarter of last year and was up 10% on the previous three months.
Louise Brittain, partner in Deloitte’s Contentious Insolvency team, said: “It is concerning that people do not appear to be seeking advice in dealing with their debt through a formal process. These figures must not mask the fact that the crippling effects of personal debt are still very much being felt by households across England and Wales.”
She said that the Monetary Policy Committee’s decision to keep the base rate at 0.5% would have brought a sigh of relief to debt-riddled households, helping thousands of cash-strapped homeowners avoid personal insolvency.
“However, the economy as a whole still remains fragile with households feeling the squeeze from high inflation, tax rises and the prospect of job losses, so we cannot count on this positive trend continuing as the year goes on.”
The total number of people entering into a personal insolvency process in 2010 was 135,089 – the highest since records began.
