More Britons being forced to declare bankruptcy

Publication date | 14/11/2008

An increasing number of Britons are being forced to declare themselves bankrupt, according to new figures released today (November 14th).

The Ministry of Justice revealed that statistics compiled by the High Court and the county courts of England and Wales show that debtors' petitions are up by seven per cent from a year ago to 13,653.

Dr Howard Archer, chief UK economist at Global Insight, explained that while the recent cut in the base rate of interest may help some homeowners, the threat of insolvency is growing.

He said: "Individual bankruptcies are poised to surge over the coming months in the face of recession, faster rising unemployment, higher debt levels, very tight credit conditions and more and more people being trapped in negative equity."

Furthermore, the data showed that a total of 3,184 companies have been issued with winding up petitions - a rise of 13 per cent from the figure recorded in 2007.

Global Insight is the world's largest economic organisation, serving over 3,800 clients worldwide in industry, finance and government.