KPMG predicts insolvency numbers to hit 120,000

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
(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

One in 10 uni students facing insolvency

Banks are ‘frustrating debt resolution’

Related reading