A total of 134,142 people in England and Wales were declared insolvent during the year – which, according to the Telegraph, is equivalent to about one in every 320 adults.

The figure beat the previous record of 107,288 set in 2006 – and Insolvency Practitioners believe this figure had already been passed by October last year.

The total number of insolvencies in 2009 was made up of 74,670 bankruptcies, 47,641 IVAs (Individual Voluntary Arrangements) and 11,831 DROs (Debt Relief Orders).

In the fourth quarter of 2009 alone, there were 35,574 personal insolvencies. This figure was made up of 17,007 bankruptcies, 13,219 IVAs and 5,348 DROs.

What’s next for personal insolvency?

Now the UK economy is out of recession, it would be easy to assume that personal debt problems will soon decrease.

However, director of personal insolvency at accountancy firm KPMG, Chris Nutting, said: “Our research shows that over 223 people a day are choosing to petition for their own bankruptcy. The figures show that there are still many people experiencing serious financial difficulties, despite record low interest rates.

“While Britain is technically out of recession, the harsh reality is that many people are still living beyond their means. Lessons from history show that personal insolvencies will continue to rise after the recession finally ends and for some time to come.

“If, as predicted, there are rises in tax and reductions in public sector spending, a lot of people will need to take drastic action to resolve their financial problems, such as applying for bankruptcy.”

Alternatives to personal insolvency

If you can’t keep up with your debt payments, and think that you may need to enter a formal debt solution such as an IVA, it is important that you consider all your options before doing so. You may find, for example, that an alternative debt solution – such as a debt management plan – could be a more suitable solution to your debt problems.

To find out more about what your best route out of debt may be, you should talk to a professional debt adviser. The right debt adviser will be able to assess your situation and let you know what they believe to be the best way for you to tackle your debt.