The number of people declaring themselves to be insolvent has fallen to the lowest for 10 years.
The figures, released by the Insolvency Service, show that the number of people who were declared insolvent in 2015 fell by 19%, compared to 2014, to 79,965.
This is the fifth year in a row when the number of insolvencies has fallen and is generally seen as a reflection of an improving economy. The figures will also have been helped by rising employment, a fall in the rate of inflation and slow, if steady, wage growth.
However, the figures also showed that in the last quarter of 2015 the rate of insolvencies actually rose by 3.6% compared to the previous three months.
There are a number of ways an individual can deal with mounting debt, which they are unable to pay, these include bankruptcy, an Individual Voluntary Arrangement (IVA) or a Debt Relief Order.
Each option is designed to return as much as possible to creditors, and has their own pros and cons.
If you are experiencing difficulty in repaying your debts seeking help at the earliest possible stage is always recommended. In the first instance we would suggest speaking to Step Change, a charity which provides free and expert debt advice.
You can learn more about Step Change and their work by clicking here.