The number of bankrupt people in the UK is set to rise, according to new industry figures.
R3’s president Peter Sergeant was quoted by the Sunday Times this week as saying as many as one million people will be technically insolvent by the end of 2009.
He claimed that official statistics do not accurately reflect the true situation, with over 700,000 people declared insolvent by their banks not featuring in government figures.
“The official insolvency statistics are only the tip of the iceberg,” Mr Sergeant remarked.
Money education charity Credit Action has also predicted a surge in insolvency and bankruptcy cases over the course of the year.
On May 1st, it expected 323 people to have ended up in this situation, a figure which it believes will rise to 435 a day during the next seven months – the equivalent of one person entering into an Individual Voluntary Arrangement once every 3.3 minutes.
By Chris Trimble