These latest figures give a clear indicator as to where we are going with consumer borrowing with predictions ranging from 130,000 to 150,000 for the year when last year it was nearer 107,000. In any event this last quarter was the highest since records began in 1960.

These figures are combined insolvencies, those that have gone bankrupt or proposed an Individual Voluntary Arrangement, (often referred to as an IVA).

An interesting point to note is that 2008 had lower combined insolvencies than for 2006 and 2007. See insolvency figures since records began.

This would have been even higher if the government had not withdrawn Simplified Individual Arrangements, (SIVAs) on 17th November last year. It is a real worry that many borrowers will just not be able to cope mentally and emotionally as the pressure builds from bills in the post and those harassing telephone calls from lenders demanding money they do not have. 

I have numerous clients that need to go bankrupt as it is their only option but they cannot afford the fee of £510 per person. This can be reduced to £360 per person under certain circumstances if they are on benefits but I have been campaigning with the PM and other political parties in an attempt to get a waiver on these fees. All my correspondence with the PM can be found here.

Also included in the figures are Debt Relief Orders, (DROs). These were introduced by the Government in April 2009 and were designed to allow those with debts of less than £15,000 and minimal assets to write off their debts without entering into a full blown bankruptcy or having to go to Court. These are proving to be totally ineffective in helping consumers due to the ridiculous qualifying procedure.

BBC News Channel

I have been interviewed several times on BBC News Channel on Debt Relief Orders, you can watch and see why I feel this government should do more to help overstretched consumers.

Watch BBC News Channel 2 May 2009

Watch BBC News Channel 7 August 2009

You can find out more on debtwizard guide to debt relief orders.

I am of the opinion that this is just the tip of the iceberg as too many people have debts that they have no realistic hope of repaying and who should be proposing either an IVA or going bankrupt.  Instead they are languishing in long term repayment programmes with no debt or interest relief.

My forecast for 2010 is for insolvencies to run in excess of 200,000, which dwarfs the forecast for the preceding year.