By Lea Pachta
The Insolvency Service’s new report reveals that the number of people in England and Wales declaring insolvency between October and December 2009 rose to a record high of 35,574.
The figures reveal that the number of insolvencies in Q4 has increased by 24.9% since the same period in 2008.
As widely predicted, the total number of personal insolvencies for the full year has exceeded 130,000 individuals.
Alec Pillmoor, Head of Personal Insolvency at Baker Tilly, commented on the numbers:
“The figures show that one in every 320 adults in England and Wales entered a formal insolvency process (Bankruptcy, Individual Voluntary Arrangement or Debt Relief Order) in the calendar year 2009.
“The total number of personal insolvencies for the final quarter are broadly similar to quarter three of 2009. Whilst the recent unemployment statistics have been more favourable, many families are finding it difficult to manage their finances with reduced hours of work. Our major concern is for 2010 as the predicted increase in interest rates and reductions in public sector spending may result in even more individuals entering insolvency.”