The number of people declared insolvent in England and Wales has risen by almost 9% during the third quarter of the year, according to new figures.

Individual insolvencies rose by 8.8% to 27,087, while corporate liquidations rose by 10.5% in the same period, to 4,001.

In Scotland, just under 6,000 people were declared insolvent - a massive 70% more than during the same three months, last year. Meanwhile, 50% of companies were also put into administration.

Among the total number of individuals going insolvent, there were 17,341 bankruptcies and 9,746 IVAs in the last quarter. This is 4.6% more than last year.

The Insolvency Service released the figures amid warnings from commentators that it was "the beginning of the storm", adding the number of people taking out individual voluntary arrangements (IVAs) or declaring themselves bankrupt was expected to continue as the economic downturn continues.

Mark Sands, Director of personal insolvency at KPMG, revealed a record 150,000 people are expected to be declared insolvent during 2009.

He said: "The downturn and the associated increases in unemployment are starting to have an impact. This is being seen not only in the increase in personal insolvencies but also in the related issues of increased mortgagee possessions and the greater use of charging orders by unsecured lenders who have not been paid."

He added: "Whilst consumers will fight to keep their family homes, and both lenders and the courts system in place to ensure that possession is the last resort, once the property is sold there is often little reason for someone with other significant debts not to declare themselves bankrupt."

(JM)