Recently released figures have shown that an increased number of people could be facing bankruptcy, with a rise in the number of people facing bankruptcy having already risen in the third quarter of the year. The figures show that there was a 7 percent increase in the number of people facing bankruptcy during the third quarter of the year, reflecting the effect of the global financial crisis on many household struggling to keep up with their financial obligations.

In the three months to the end of September around 13,653 people petitioned for bankruptcy in England and Wales, according to figures from the Ministry of Justice. Since 1995 this is the second highest figure recorded by the Ministry of Justice. There was a 13 percent increase in the number of company winding up petitions in this period too, and a 10 percent rise in the number of creditor petitions.

One economist from Global Insight said that the figures were a sign of things to come, and he added: “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.”

England and Wales has seen a sharp rise in the number of people that are being declared insolvent, and with job losses expected to continue rising as a result of the recession these figures could get worse and worse over time. The number of firms being liquidated has risen by over a quarter compared to a year ago. Many are also struggling because of the rise in living costs and bills over recent months, which has also impacted upon their ability to keep up with their financial obligations.

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