The number of consumers in England and Wales that were declared insolvent has reached record numbers as consumers battle through over indulgence of consumer debt. 

Figures from the Insolvency Service reveal that 35,574 consumers were declared insolvent in the last three months of 2009; this is an increase of 25% on the same period a year earlier.

This equates to one in every 320 adults either going bankrupt or entering into an Individual Voluntary Arrangement (IVA).

The total insolvencies for 2009 were 134,142 which is a massive increase of 26% or 27,598 on the year before.

Also included in the figures are Debt Relief Orders, (DROs), which were introduced by the Government in April 2009. A DRO is 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 only help a selected few and are totally ineffective in helping many consumers because of the ridiculous and unreasonable qualifying procedure; still they work for some as 11,831 have been issued since their inception. Debtwizard guide to Debt Relief Orders

So why does the Debtwizard say this is the tip of the iceberg and that these new figures are masking the true amount of unmanageable debt in the UK?

You can read why he feels the figures should be nearer the million mark at ...............

DebtWizard blog 2009 Insolvency figures hide true level of unmanageable debt 

You can also hear Mike's comments on the insolvency figures on the following shows: 

BBC Essex 5 Feb 2010 - Insolvency figures.

BBC Three Counties 5 Feb 2010 - Insolvency figures.

BBC Essex 8 Feb 2010 - Debt collection agency harassment.