The number of personal insolvencies rose to record levels in the first quarter of 2009 as the impact of the recession and rising unemployment began to hit home.

Insolvency Service figures show 29,774 individual insolvencies in England and Wales – up 19 per cent compared with the first quarter of 2008. Bankruptcies rose to an all-time high of 19,062 – up 23 per cent from the first three months of 2008. Individual voluntary arrangements rose 12 per cent to more than 10,700.