KPMG predicts record bankruptcies

KPMG expects official bankruptcy figures to top 18,500 people in Engalnd and Wales for the three months to March, 500 more than in the previous quarter.

The number of bankruptcies rose each quarter during 2008, and KPMG expects the trend to continue until there are 150,000 people in bankruptcy by the end of 2009.

The figures, to be released by the Insolvency Service today, include those who take out an individual voluntary agreement, under which interest on debt is frozen in exchange for a set amount being repaid each month, The Telegraph reported.

Next quearter, the insolvency numbers will for the first time include those who take out Debt Relief Orders, which are available to those with debts less than £15,000 who seek to avoid a court bankruptcy ruling.