Talk of recovery from the financial crisis in the UK was dealt a crucial blow with the release of the highest insolvency figures since records began, last week, showing over 35,000 people were declared bankrupt in the three months up to September 2009.
The actual figure from the Insolvency Service recorded 35,242 people in England and Wales were declared insolvent, a 28% increase on the same period last year.
It represents the highest figure since records began in 1960 and there appears to be no let up as figures will only rise as unemployment continues to increase.
Anthony Cork, director at accountants Wilkins Kennedy, said;
“Those who have already suffered job losses are just beginning to be represented in these figures but there are many more behind them who are still battling to weather the storm. Historically unemployment has continued to rise even as the economy begins to recover, and this means that personal insolvencies can only soar even further. Things are likely to become very bloody indeed.”
Some good news is that company insolvencies fell by almost 10% in the period, with 1,300 businesses suffering compulsory liquidation, with a further 1,578 in the first stages of the winding up process.
With the current state of the economy it would not be a surprise to see the figures reach even higher levels in the new year as many businesses and individuals over stretch themselves in the Christmas period.
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