Company and personal insolvencies have risen for the first time since 2006, newly released figures have shown.

According to the Insolvency Service, the number of company cases rose to 3,210 in the first three months of 2008, a four per cent increase on the previous year.

Individual cases meanwhile rose to 25,264 across England and Wales, a 1.7 per cent increase on the previous quarter, but still 13.2 per cent fewer than last year.

Of the 25,264, 15,651 were bankruptcies, while the remaining 9.614 were IVA's.

It is partly a result of tighter lending criteria employed by banks, according to Mike Gerrard, a personal insolvency partner at Grant Thornton, who predicted the numbers will rise by the end of the year.

"This latest increase in personal insolvencies shows the financial strain being wrought on individuals from a combination of high living costs and tighter lending
conditions. It's a tough year to be struggling with debt," he said.

According to the Insolvency Service, there has been a sharp increase in the number of debtor's petition bankruptcies rather than creditor petition’s over the last few years.


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