More than 25,000 people from England and Wales entered insolvency over the course of the first three months of this year, according to the latest official data.
The figures show that there were 15,651 cases of bankruptcy and 9,614 reported instances of people entering an Individual Voluntary Arrangement (IVA) by way of a debt solution.
Overall, bankruptcy levels were roughly the same in the first quarter of this year as the final quarter of 2007 but IVA rates increased by 4.3 per cent on the same comparative basis.
The Insolvency Service reports that the latest data represent a reversal of the trend during the past year that saw insolvency rates falling on a quarterly basis.
In addition to insolvency, the prospect of repossession is becoming increasingly real for many British consumers, with the Centre for Economics and Business Research forecasting recently that 25 per cent more homes will be lost in the UK this year than in 2007.