A record number of consumers were deemed unable to pay their debts in England and Wales in 2006. The overall number of people declared insolvent last year totalled around 107,000.
Once declared insolvent individuals either go on to set up an IVA (Individual Voluntary Agreement), or become bankrupt.
The final few months of the year saw the biggest rise in insolvencies, with a 7% increase compared to earlier in the year. Insolvencies have increased from around 28,000 in 1998 to over 100,000 in 2006, which represents a staggering increase.