Bankruptcies hit 45-year high
Bankruptcies have hit a 45-year high, according to new figures from the Department of Trade and Industry (DTI).
Analysts attribute the increase to a large rise in mortgage repossessions and bad debts being reported by numerous consumer lenders.
Today’s figures reveal 15,394 individual insolvencies in England and Wales between April and June this year, the highest figures since records began in 1960.
This is an 11.7 per cent increase on the previous three months and a rise of 36.8 per cent year on year.
“These figures do not paint a pretty picture and cannot be unrelated to the huge rise in mortgage repossessions and the increasing bad debts reported by consumer lenders recently,” said Steve Treharne, head of personal insolvency at accountancy giants KPMG.
“We have a major consumer debt problem and, if current trends continue, we could see annual bankruptcy rates at double the present level before we see any improvement.”
