Insolvency figures

The number of people who were unable to keep on top of their debts was 106,645, this was down by 0.6 percent compared to 2006, but despite this it was the second highest recorded figure according to the Insolvency Service.

The number of bankruptcies increased by 2.4 percent during 2007, and the number of people who took out Individual Voluntary Arrangements decreased by 5 percent.

It is rumoured that the decrease in insolvencies is the calm before the storm, it is predicted that the number of people who cannot keep on top of their debts this year will begin to increase again.

It is also predicted that the number of insolvencies will reach a record this year as people are struggling to keep up with the increase in the cost of living.