The number of individual voluntary arrangements (IVAs) taken out by consumers struggling with debt remained almost exactly the same in the final quarter of 2011 as it did in the previous three months.
Insolvency Service figures showed 13,047 IVAs were agreed in the period, just one less than in the three months to September.
Yet at the same time, the number of individual bankruptcies and overall insolvencies fell, with the total number of people in England and Wales declaring insolvency of one form or another dropping from 30,219 to 28,973.
It was the third successive quarter in which there were more IVAs than individual bankruptcies, suggesting it is becoming the method of choice for most people in deep financial trouble to tackle the problem.
Discussing the figures, chief executive of the Money Advice Trust Joanna Elson said: "I would caution against considering this fall in personal insolvency as completely good news," arguing that the decline could be because the cost in fees of going bankrupt is the main reason for less of these taking place.
By James Francis
