AN INSOLVENCY expert said latest figures showing a rise in personal bankruptcies came as no surprise.
And Peter Sargent, Huddersfield and Halifax spokesman for the Association of Business Recovery Professionals, said there were worrying trends in the latest figures.
The Government's Insolvency Service said a record number of people became insolvent during the summer. The Insolvency Service said 27,644 people went bankrupt or took out individual voluntary arrangements (IVAs) between July and September.
IVAs are arrangements that see the debtor come to an agreement with creditors over repaying money. But some experts believe IVAs are being `oversold' to people who should be trying to tackle debt in other ways.
A breakdown of the figures shows that 15,416 people went bankrupt while 12,228 people opted for an IVA.
The total represents an increase of 55.4% on the same period a year ago.
The number of IVAs rose by almost 10% on the previous quarter, but doubled compared with the same period of last year. Bankruptcy figures were up by 2.7% on the last quarter and 27% on 2005.
The national figures reinforce predictions that the number of people going insolvent in 2006 will exceed 100,000 for the first time.
Mr Sargent, who head insolvency firm Begbies Traynor in Halifax, said: "We are not surprised the number of IVAs has increased. We are concerned by this growth and how they are advertised.
"We are committed to working with Government and others to address these issues. We promote best practice for professionals working with financially troubled individuals and businesses."