Debt: personal insolvencies to rise, says KPMG

Personal insolvencies – bankruptcies and IVAs (Individual Voluntary Arrangements) – are set to increase, predicts KPMG.

"We expect that by the end of 2008," said Mark Sands, Director, Personal Insolvency at KPMG, "personal insolvencies will reach up to 110,000, as the credit crunch continues to limit the options available to consumers hard hit by increased household costs.

"During 2009, we think this figure is likely to dramatically increase to 150,000, as factors such as rising unemployment also start to take hold."

"It`s alarming to see predictions such as this," said a spokesperson for debt management company Gregory Pennington. "However, it`s important to remember that the actual number of insolvencies could well differ, depending on how the economy fares in the months ahead, and depending on how many people seek debt advice and take the appropriate steps to sort out their debt problems in time to avoid insolvency."

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