A record 14,000 people are thought to have been declared insolvent in the UK during March.
Research showed the number of people going bankrupt or taking out an individual voluntary agreement (IVA) or debt relief order (DRO) during the month is estimated to be 16% higher than the previous record set in November last year. Around 35,000 people are thought to have gone insolvent during the first three months of the year, according to accountancy firm RSM Tenon. Mark Sands, head of bankruptcy at RSM Tenon, said: "The 'debt-lag', where monies owed have piled up before insolvency hits, can last from anything between nine and 24 months. The record insolvencies for March will partly be a hangover from Christmas, but is more likely due to the effects of the financial crisis."
The group expects around 150,000 people to go insolvent during 2010. RSM Tenon has based its research on entries to the individual Insolvency Register. It estimates around 18,330 people will have gone bankrupt during the first quarter, 8% more than during the previous three months.