The latest figures by the Insolvency service have shown that insolvencies in the UK are on the rise. The department suggests that in the last three months of 2009 there was a 25% increase in the number of people becoming insolvent from the last quarter in 2008. This was the largest increase since the 1960s and certainly goes a long way in illustrating Britain’s debt culture with many of her citizens now paying the price.

These figures equate to around 35,000 insolvencies within a three-month period, bringing the total number of insolvencies in England and Wales to a staggering 135,000. However, one reassuring sign was that the rate of bankruptcies slowed to around 1% in the last quarter, down from 6% in the previous quarter. This should be a little reassurance and a sign that we are slowly pulling our way out of the recession.

North of the border the situation isn’t much better. Scotland saw an 18% increase in people becoming insolvent over 2009. However conversely to England and Wales, Scotland’s insolvency rate actually declined by 2.7% in the last quarter of 2009.

On the other hand, business liquidations were up 23% since last year suggesting that many businesses too were suffering at the hands of the recession.

If you are worried about insolvency the government offers a range of advice on their website which should cover most of your questions. Visit, www.insolvency.gov.uk for further details.