The number of people declared insolvent in England and Wales fell by 2.6% during the second quarter of the year, figures have shown.
A total of 34,743 people were made insolvent during the three months to June, down from 35,682 in the previous quarter.
But the latest figure is still a 5% increase on the same period in 2009, the Insolvency Service said.
At the same time the number of companies put into administration in the latest quarter was recorded at 4,080 - up 0.5% on the revised figures for the first three months of the year, but down almost a fifth on corresponding figures for last year.
Broken down, the figures revealed that 14,982 people went bankrupt in the spring months, down 20.6% year-on-year.
That is also markedly down on the 18,256 recorded in the first three months of 2010.
But the number of people taking out an individual voluntary arrangement (IVA) increased to 13,466 in the latest quarter - up 10% on last year.
Insolvency practitioners have warned Friday's figures may prove to be only a temporary reprieve.
It is thought swingeing Government spending cuts could force many more people into insolvency as it impacts on the job market.
