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Since the start of the credit crunch more than three years ago now, a large number of individuals in the UK have been struggling with their personal loan and credit card debts as well as trying to stay on top of their home owner loan or mortgage repayments.

With tightening credit conditions and growing numbers of job cuts and reduction in household income, this has led to the inevitable result of a huge increase in personal insolvency cases through bad loan and credit card debts.

However, new figures which have just been released by the Insolvency Service in the UK have shown that there has been a significant reduction in the number of insolvency cases in the UK in the last three months particularly, with the overall figures reaching their lowest level in the last five years.

Over the course of the three months leading up to the end of September this year, 13,907 individuals were declared bankrupt through bad loan debts and although this may still seem like a large number, it is the lowest level on record since the end of 2005.

The total number of insolvency cases in the UK fell by an impressive 24 per cent over the course of the last twelve months, according to the insolvency service and the number of insolvencies in the last three months fell by around 2 per cent to 33,935 cases of bad loan debts.

One expert commented on the latest figures: “The high numbers of people filing for bankruptcy is unfortunately becoming the norm and whilst today’s figures are down 3.7 per cent year on year to 33,935, we should not take this drop as a necessary sign of things to come.”

“2010 has seen steady numbers of individuals filing for bankruptcy and unfortunately, I can not see this easing up any time soon.”