The Insolvency Service said personal insolvencies rose to a 49-year high, rising 28 percent compared to the same quarter a year ago. It is a record with an asterisk, however, as the run-up was partially due to a rise in debt relief orders, a low-cost bankruptcy plan that became available earlier this year, The Times of London reported.
Debt relief orders more than doubled from the second quarter to the third with 4,505 filed in the quarter just ended.
Introduced in April, the policy allows people with debts under $25,000 and assets less than $500 to declare bankruptcy for a fee of about $150, The Times said.
In the third quarter, 4,716 British companies filed for protection. Mandatory business bankruptcies fell 12.9 percent from the third quarter of 2008, while voluntary liquidations rose 30.2 percent.
In the 12 months, 1 in 114 British businesses were declared insolvent, the Insolvency Service said.
Copyright 2009 by United Press International.
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