The number of people filing for bankruptcy has soared over the last year, it has been revealed.
According to figures released by the Ministry of Justice, petitions from those with debt problems increased by 29 per cent in the first quarter of 2009, compared to the same period a year earlier.
The figure of 16,775 also represented a nine per cent rise on the previous three-month period.
Howard Archer, economist at Global Insight, remarked: “Sharply higher unemployment, heightened debt levels, substantially lower house prices and more and more people being trapped in negative equity will all continue to impact.”
Those who are struggling to repay what they owe may want to seek advice on becoming debt free in order to avoid bankruptcy.
Earlier this month, professional services firm KPMG predicted that 150,000 Britons would be made bankrupt or enter into individual voluntary arrangements of debt relief orders over the course of this year.
By Andy Mackay