Monday 18th of May 2009
The number of people petitioning for bankruptcy increased significantly in the first quarter of the year, figures have revealed.
According to the Ministry of Justice, 16,775 debtors filed a petition over the three-month period.
The data represented an increase of nine per cent on the previous quarter, as well as a 29 per cent rise compared to a year earlier.
Those who are struggling to repay their debts but wish to avoid bankruptcy may wish to seek IVA advice online, as alternatives are available in many cases.
Commenting on the statistics, economist at Global Insight Howard Archer remarked: "Sharply higher unemployment, heightened debt levels, substantially lower house prices and more and more people being trapped in negative equity will all continue to impact."
The findings come after the Insolvency Service revealed record numbers of personal insolvencies in the first quarter of the year and professional services firm KPMG has predicted that bankruptcy, IVAs and debt relief orders will affect 150,000 people in 2009.
- Alternatives to bankruptcy available, expert notes
- Bankruptcy 'should be a last resort' to tackle debt management issues
- Bankruptcy 'has improved attitude towards debt'
- Insolvency levels rising, figures show
- Negative equity leading to bankruptcy increase, says expert
- Bankruptcy concerns 'for vulnerable UK residents'
