Another Record Breaking Year For Bankruptcies

1.24.12pm BST (GMT +0100) Fri 7th May 2004

Commenting on the individual insolvency figures released today, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "It is abundantly clear that, with personal credit rising, more people are overstretching themselves.

"Between April 2003 and April 2004, 38,500 people were served with bankruptcy orders.

"Yesterday's rise in interest rates can only aggravate the situation.

"Debt isn't just hitting those who can't pay off their credit cards, it's affecting those who can't meet basic demands like rent and council tax.

"The debt burden is hitting all income levels. It has become wholly pervasive."

ENDS

Notes

Over the last year over 38,500 people were served bankruptcy orders according to new Government figures released today. Figures released for individual insolvencies for the first quarter of 2004 show a rise of nearly 27% on the same period a year ago.

The DTI Figures can be found at: http://217.154.27.195/sd/insolv/index.htm#tables

Number of Insolvencies in England and Wales (seasonally adjusted)

Number of Insolvencies in England and Wales (seasonally adjusted)

Percentage change

2003 2003 2003 2003 2004 Q1 2004 on:

Q1 Q2 Q3r Q4r Q1 Q4 2003 Q4 2003

Individuals 8,146 8,716 9,147 10,349 10,294 -0.5% 26.8%

For individuals, the term bankrupt is used to indicate insolvency. Insolvent individuals in England and Wales are dealt with mainly under the Insolvency Act 1986. A bankruptcy order is made on the petition of the debtor or his creditor when the Court is satisfied that there is no prospect of the debt being paid.

In the 4 quarters of 2003, 36,329 people declared themselves bankrupt. In the last 4 quarters 38,506 individual insolvencies have been recorded.