Insolvency rises in first quarter of 2010

Posted 13/05/2010

Statistics released by the Ministry of Justice have shown that the number of people declaring themselves insolvent or bankrupt in the first three months of 2010 increased when compared to the previous quarter.

There were 16,348 bankruptcy petitions lodged from January to March 2010 in England and Wales, an increase of 20 per cent on October 2009 to December 2010.

This follows a recent report from the Insolvency Service, which showed that there were 35,682 personal insolvencies in the first quarter of 2010, a new record.

“People who have been fighting to stay afloat for the past two years are increasingly throwing in the towel, as they simply can’t go on any longer,” insolvency expert Brian Johnson told BBC News.

Last month, a report commissioned by trade body R3 found that seeking professional insolvency advice helped to save some two million jobs during 2009.

It urged anyone facing financial problems to get professional help as soon as possible.