Bankruptcies up 2.2% on last year

A total of 15,833 people declared bankruptcy over the course of the third quarter of this year, which is 2.2 per cent more than the same period in 2006, it has been revealed.

Official figures from the Insolvency Service show that in England and Wales there were just over 26,000 people who entered some form of individual insolvency during July, August and September of this year.

The number of people entering Individual Voluntary Arrangements (IVAs) fell slightly during the quarter to 10,239 and by 4.3 per cent compared with the same period last year, the service’s figures demonstrate.

Howard Archer, chief UK and Europe economist at Global Insight, said: “The decline in individual insolvenices from their peak first-quarter level has been primarily due to a reduction in the number of people entering into IVAs.

“This is largely a consequence of lenders becoming markedly more reluctant to enter into them and setting stricter terms.”