Increase in bankruptcies and IVAs predicted

More British people will declare themselves bankrupt or take out an Individual Voluntary Arrangement (IVA) in the coming year, according to 70 per cent of insolvency practitioners.

A total of 68 per cent expected an increase in the next six months, the survey by R3, published by the Press Association, found.

A third of those questioned said they had already witnessed a rise in serious personal debt problems.

Insolvency practitioners said people considered debt a way of life and irresponsible borrowing and lending have exacerbated the issue.

People from a range of incomes are declaring bankruptcy according to R3, with 14 per cent of practitioners saying they had given debt advice to people earning between £30,000 and £39,000.

President of R3 Nick O’Reilly said the research “indicates we are unfortunately in for a long period of protracted pain”.

Additionally, 90 per cent predicted an increase in business insolvencies, particularly among retail, leisure and construction companies.