The number of personal insolvencies in the UK for the first quarter has soared 73.4% compared to the same period last year, according to the latest figures from the Department of Trade and Industry.
Personal bankruptcies were up 51.2% compared to last year and Individual Voluntary Agreements (IVA’s) were up 141.9%. Company liquidations also rose, with a 17% increase compared to the same time last year.
The department said that on April 1 2004 there was an increase in the amount of the petition deposit required before a bankruptcy order can be made, leading to a significant rise in the number of bankruptcies in the last two weeks before the increase became effective.
However, there is increasing concern in the UK that personal debt is spiraling out of control. The average debt per adult in the UK was GBP4,021 at the end of 2005, according to Datamonitor research. The government has pledged to tackle the problem by funding a two year GBP45 million program to recruit up to 500 debt advisers across the country.