EXPERTS think Nottingham's economy has turned a corner after a dramatic drop in people filing for bankruptcy.
Just 299 people have filed for bankruptcy at Nottingham County Court so far this year, with 841 applications throughout 2012.
This was down 27 per cent on the 1,154 filed in 2011, and nearly three-quarters lower than in 2009 when 3,175 applications were made.
George Cowcher, chief executive of the Derbyshire and Nottinghamshire Chamber of Commerce, welcomed the news as a sign of an improving economy.
He said: "These are encouraging figures which provide further evidence that the economy is heading in the right direction.
"We may still not be seeing the sustained level of growth we would like, but these figures show fewer firms are going out of business when compared to the recession."
Research by credit experts Experian has also revealed that personal insolvencies in Nottingham have fallen in recent years, compared to other places.
During 2011, 1.11 per cent of personal insolvencies that took place in the UK were in Nottingham.
This fell in 2012, however, to 0.95 per cent of the total share.
James Jones, Experian's head of consumer affairs, said: "Any drop in personal insolvencies is very welcome news.
"Fewer businesses failing means fewer people losing their jobs, which is a major financial shock that can often leave people facing the spectre of unmanageable debt. So this is very positive news indeed."
Owners of businesses that have grown in recent months said the news of fewer bankruptcies could result in new confidence in Nottingham's economy.
Sangita Tryner took the risk to move Delilah Fine Foods from Fletcher Gate into bigger premises in Victoria Street, in the city centre, last October.
She said: We didn't know what the new venture was going to bring.
"We took the massive risk so we could grow Delilah.
"Our turnover has more than doubled and our employees have grown from nine to 25."
She added: "The general feedback from customers is they are doing all right. The consensus is that people feel happier and are more comfortable.
"It is really positive news [the bankruptcy figures]."
Bosses of IT company Retail Assist, in Friar Lane, in the city centre, also said the figures showed things were on the up.
The company experienced a record year in 2012-13, culminating with being named the Nottinghamshire Company of the Year in the 2013 Nottingham Post Business Awards.
Executive chairman Alan Morris said: "We have seen new businesses rise from the recession and they are finding new ways of successfully doing business in current times, and they are thriving on new opportunities that present themselves, which has to give rise to confidence for the future.
"The economy has changed, so we have to look differently at things. The most important thing is consumer confidence; if this improves, everything improves."
Despite the reduction, Richard Saville, senior partner for the East Midlands at Nottingham-based business recovery specialists Begbies Traynor, said life was still tough for many people in the city.
"The average person on an average wage is really struggling because there have been no significant wage rises in recent years, inflation and prices are going up," he said.
"The only advice I give people is you have to face up to your debts."
Clare Howling, specialist services manager at Nottingham and District Citizens Advice Bureau, also said staff had seen an increase in people with debt issues in the last year.
She said: "I think the issue could become more of a problem after changes to the benefits system."
City centre businessman Geoff Williams, who runs gift shop Tokenhouse and picture frame company Framework, added: "Maybe it is a sign that things are getting better, but perhaps it shows that most of the dead wood has fallen off the tree."
Since 2009, people with debts of less than £15,000 have been able to apply for a debt relief order instead of filing for bankruptcy.
Insolvency Service figures, however, show the number of people in Nottingham taking up debt relief orders doesn't affect the downward trend when combined with bankruptcy applications.