Easy credit, relaxed legislation, higher bills and a slowing economy led to the number of people filing for insolvency in England and Wales increasing by 57 per cent in the final quarter of last year, compared with the same three months in 2004, according to official figures.

The Department of Trade and Industry said there were 20,461 personal insolvencies in the final three months of the year, 15 per cent more than the previous quarter. The total number last year was 67,580: a 45 per cent increase on 2004.