Bankruptcy ‘on the rise’ across Britain

Bankruptcy among Britons has increased by over 12 per cent over the last three months, new research by The Insolvency Service has revealed.

Figures have jumped from 15,463 in the second quarter of 2008 to 17,341 during the last three months, the data shows, while there has also been an 8.8 per cent increase in individual insolvencies – up to 27,087 from 24,893 during the same time period.

And 275 people per day are declaring themselves either bankrupt or insolvent, resulting in 121 homes being repossessed every 24 hours.

Commenting on the figures, Louise Bond of price comparison site uSwitch.com urged consumers to seek free debt advice from organisations such as National Debtline.

“It’s worrying that so many people are resorting to individual insolvencies, be it an IVA or bankruptcy, to resolve their personal debt problems,” she remarked, adding that such measures should always be a “last resort” for those in financial difficulty.

Meanwhile, Citizens Advice has stated it has seen an increase in the number of people in financial difficulties seeking debt advice.

By Tom Musk