More people are applying for bankruptcy than being forced into it according to figures from the Department for Constitutional Affairs (DCA).
Despite there being fewer petitions from creditors, there has been an increase of over 20% in the number of people filing for their own bankruptcy.
Over 26,000 people became insolvent in the second quarter of 2006 according to government’s Insolvency Service. That’s a 66% rise from the same period last year.
These figures prompted many debt experts to forecast that more than 100,000 people in the UK would become insolvent before the end of 2006.
These government statistics do however also take into account those who obtain IVAs or Individual Voluntary Arrangements - the system where debtors come to an agreement with their creditors.