Insolvency figures 'to rise'

06/11/2008

Insolvency figures are likely to have been on the increase over the three months to September, accountants KPMG have said.

The firm said that it expected that around 27,000 people found themselves unable to pay their debts over the period - up from 24,500 over the April-June period.

KPMG also forecast further rises in insolvencies over the months to come, as the credit crunch leads to further job losses.

Mark Sands, director of personal insolvency at KPMG, said: "We're predicting that the overall [July-September] personal insolvency figures are likely to show further increases both quarter-on-quarter and annually.

"We believe the bankruptcy statistics will increase by a small amount and that IVAs are likely to be up on the third quarter, but slightly down on the year."

KPMG expects insolvencies total to hit 110,000 in 2008 - and increase to 150,000 in 2009.

Unemployment figures are thought likely by analysts to hit two million by the end of the year.

Tags; Housing Debt and Bills, Credit Card Lifestyle,

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