KPMG has warned that a record 120,000 people in the UK will file for insolvency during 2007.
The firm made this predicted following official figures which showed a 28% rise in the second quarter and following the Insolvency Service reporting that 113,439 people filed for protection in the three months to July.
This was down 8% on the first quarter but substantially up on 2006.
The figures also showed that Individual Voluntary Agreements (IVAs), which allow debtors to write off part of their debt and which have risen sharply in recent years, fell 15% over the quarter.
Further reading:
Government confronts banks in IVA showdown
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