RSM Tenon has revealed that official stats showing a 21 per cent year-on-year decline in bankruptcies is not all that it appears. Although personal bankruptcies fell to pre-recession levels in the second quarter, the headline drop is hiding a rush by overstretched consumers for alternative ways to pull the plug.

Debt relief orders (DROs) and individual voluntary agreements (IVAs) are two of the favorites used by individuals to avoid going bankrupt – the number of people opting for them is up 11 per cent and 16 per cent respectively quarter-on-quarter.

Which has leading Mark Sands of RSM to say, “The huge drop in bankruptcies has been countered by increases in other insolvency options, making this reduction a red herring.” i.e. put the Champagne away and keep listening.