Individual insolvencies increase

There were 30,075 individual insolvencies in England and Wales in the first quarter of 2007, according to the Insolvency Service. This was an increase of 1.2% on the previous quarter and an increase of 23.9% on the same period a year ago.

This was made up of 16,842 bankruptcies, a decrease of 1.3% on the previous quarter and an increase of 10.0% on the corresponding quarter of the previous year, and 13,233 Individual Voluntary Arrangements (IVAs), an increase of 4.7% on the previous quarter and an increase of 47.6% on the corresponding quarter of the previous year.

Sue Edwards, Senior Policy Officer, Citizens Advice: "Today's 24% rise in insolvency figures don’t surprise us and reflects the increasing number of debt problems local Citizens Advice Bureaux deal with. It is vital that people get independent advice before opting for bankruptcy or an IVA as their decisions will have long-term consequences."