Recent figures released from the Department of Trade and Industry have revealed that almost 70,000 people became insolvent last year, which is the highest number of bankruptcies since the 1990's recession.
The department believe that several factors affected these figures, including the availability of credit, unemployment, and reasons relating to the individuals, such as divorce and ill health.
Our view
The figures are up because people are more willing to choose bankruptcy as a way of sorting out their finances since changes to the Enterprise Act 2002.
Before April 2004, anyone declared bankrupt had to wait at least three years before they could be discharged, but this time has now been reduced to just one year.
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