Individual insolvencies rose by 8.8% in the last financial quarter according to a new report released today.
The number of people declared insolvent between June and September hit 27,087 according to the Insolvency Service, although the increase was largely expected due to the current economic climate.
The report, which highlights how many Brits are now struggling to cope with spiralling debts, revealed that amongst the number of personal insolvencies, there were 17,341 bankruptcies and 9,746 individual voluntary agreements (IVAs).
The number of insolvencies had actually fallen in Q2 and the Insolvency Service noted that there had been a notable increase in the number of people declaring themselves as bankrupt.
"For bankruptcy orders there has been a pronounced shift towards debtor's petition bankruptcies [people declaring themselves bankrupt] and away from creditor's petitions in recent years," said the Insolvency Service."
As well as the increase in personal insolvencies, the number of businesses going bust in the same period rose to 4,001 – an increase of 10.5% on the previous quarter. That figure now means that the number of businesses being liquidated is now up by 26.3% on this time last year.
The number of receiverships, administrations and company voluntary agreements, normally a means of attempting to save a struggling business, increased by 65% on last year to 1,444.
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