As unemployment and debt problems have worsened throughout 2009, the number of people struggling to manage their finances has risen dramatically ñ reflected in the latest insolvency figures released today.

According to figures released by the Insolvency Service, personal insolvencies in England and Wales were up by 28.3 per cent over the last twelve months.

During the months of July to September this year, the number of people becoming insolvent leapt to 35,242, a 28.2 per cent increase on the same period of last year and an increase of 6.6% on the previous three months.

This figure is made up of 18,347 bankruptcies, 12,390 people entering individual voluntary arrangements (IVAs), and 4,505 people taking out the government’s new debt solution, debt relief orders (DROs) – aimed at consumers with fewer assets and minimum incomes.

The number of IVAs & where borrowers arrange to pay off a proportion of their debt over a set period of time & leapt by 20.9% over the year, despite indications that creditors were becoming less willing to agree to them.

Ivan Cooper, Chairman at debt advice experts Chiltern, said: “The number of IVAs has risen by over 20% in the past year, despite indications that creditors are less willing to agree to them, which suggests that many more people are suffering with their finances.

“In all cases, we would recommend seeking impartial advice from a reputable organisation, like Chiltern, as expert debt help can usually prevent problems from worsening and can often help to avoid bankruptcy.”