Monday 9th of November 2009
The number of personal bankruptcies in England and Wales hit an all-time high in the last quarter, as more than 35,000 people were declared insolvent.
According to figures from the Insolvency Service, the figure is up by 28 per cent compared with last year and 6.6 per cent on the previous three months of 2009.
Rising unemployment and the ongoing recession have been driving up the rate of bankruptcies since late 2007.
Of the 35,242 insolvencies, 18,347 people chose bankruptcy ahead of an individual voluntary arrangement or a debt relief order - up 6.4 per cent on 2008 figures.
Howard Archer, of IHS Global Insight, told the Times: "It is highly likely that individual insolvencies will continue to rise for some time to come. Many people are suffering wage freezes or even cuts, debt levels have risen and credit conditions remain very tight."
Last week former Eastenders actor and I’m a Celebrity winner Joe Swash was declared bankrupt after failing to pay off £20,000 of a tax bill.
By Rachel Powell
