The number of individuals being declared insolvent in England and Wales rose to 22,503 during the second quarter of this year, new figures from the Insolvency Service show.
This constitutes a 6.9% rise when compared to the first quarter of 2016, and a 22.4% rise on the second quarter of 2015.
In Scotland, individual insolvencies rose by 49.8% during the second quarter of 2016, with a total of 2,405 people becoming insolvent.
Meanwhile, figures for Northern Ireland show that there were 755 individual insolvencies in the second quarter of this year, which represents a rise of 8.5% on the same quarter in 2015.
The rise in personal insolvencies in England and Wales can be attributed to an increase in Individual Voluntary Arrangements (IVAs): there were 12,225 IVAs in the second quarter of 2016 – 15.4% higher compared to the first quarter.
However, the data also revealed that the number of traditional bankruptcies has fallen in England and Wales: during the second quarter of 2016, the number of bankruptcies fell by 5.4% compared to the previous quarter.