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According to statistics released today from the Insolvency Service, which have indicated that the number of insolvencies in the UK is increasing significantly.The figures revealed that individual insolvencies in the UK hit 27,087 in the third quarter of 2008, was higher by 8.8 per cent from the previous quarter and 4.6 per cent year on year. However, of the insolvencies, there were 17,341 bankruptcies, up 9.5 per cent year on year, and 9,746 Individual Voluntary Arrangements (IVAs), up 3.1 per cent year on year .Commenting on the bankruptcy statistics, director of personal insolvency at KPMG, Mark Sands stated that “The slump and the associated boosted in unemployment are starting to have an impact. This is being seen not only in the rise in personal insolvencies but also in the related issues of raised mortgage possessions and the greater use of charging orders by unsecured lenders who have not been paid.

“Whilst consumers will struggle to keep their family homes and both lenders and the courts have systems in place to make sure that possession is the last resort, once the property is sold there is often little reason for someone with other major debts not to announce themselves bankrupt.”

Commenting on debt and its side-effects, personal finance manager at uSwitch.com, Louise Bond, added: “At the moment, consumers are being strike from every angle with price hikes across all areas. This may be making many people feel that their funds are completely out of control.”

Commenting on the responsibility of the banks which have so far not been playing appropriately when it comes to passing on rate slashes and been rapid to repossess homes, Ms Bond added: “Banks have a responsibility to help people in monetary constraints and free debt suggestion is available from organizations like the Consumer Credit Counselling Service, National Debtline and Citizen’s Advice. I would advise people to begin enchanting action before they reach monetary breaking point.”

The statistics also show that company insolvencies have increased by 26 per cent year on year. According to the figures, there were 4,001 obligatory liquidations and creditors’ voluntary liquidations in the UK between July and September this year.

However, as the UK heads towards a depression it has become clear that there are not many companies immune to a recession. In fact, the only exceptions so far have been discount stores like the supermarket Aldi and high street clothes shop Primark.