36,000 Declared Themselves Bankrupt In 2003 - Bruce

12.00.00am GMT Fri 6th Feb 2004

36,000 people were served bankruptcy orders in 2003 according to new Government figures released today. This is a rise of almost 30% on the same period a year ago.

Bankruptcy figures stretching from 2001 to the most recently published show an upward trend:

Bankruptcy figures totals Q1-Q4 (inclusive)

2001 29,795

2002 30,587

2003 36,249

Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "The Bank of England's move to dampen down consumer spending has come too late, judging by the massive leap in the number of people declaring themselves bankrupt."

"The last quarter alone shows a jump of 12%."

"Had action been taken sooner - and no one can argue the alarm bells were not ringing - we would not have seen over 36,000 people declaring themselves bankrupt in 2003."

"With the rise in interest rates, this upward trend of bankruptcy figures will continue. People who have borrowed to the very edge of their means will find that even the smallest rise in interest rates pushes them over the edge into unsustainable debt."

"The message to people now must be, think hard before you borrow."

ENDS

Notes to Editors

For individuals, the term bankrupt is used to indicate insolvency. Insolvent individuals in England and Wales are dealt with mainly under the Insolvency Act 1986. A bankruptcy order is made on the petition of the debtor or his creditor when the Court is satisfied that there is no prospect of the debt being paid. Source: DTI Statistics Release: Insolvencies In The Fourth Quarter 2003

A recent report by Leeds University Business School suggests there has been a 70% rise in credit arrears over the past 2 years, with twenty million cases being passed to bailiffs in the past year

Research by the Liberal Democrats released figures this week showing that unsecured debt (i.e. loans not secured on assets or property) per person has grown by over 50% since 1997, while incomes have risen by only 23%.

http://www.wired-gov.net/WGLaunch.asp?ARTCL=18948

Number of Insolvencies in England and Wales (seasonally adjusted)

Number of Insolvencies in England and Wales (seasonally adjusted)

Percentage change.

2002 2003 2003 2003 2003 Q3 2003 on:

Q4 Q1 Q2r Q3 Q4 Q3 203 Q4 2003

Individuals 7,967 8,146 8,738 9,094 10,271 12% 28.90%