The figure was made up of 15,389 bankruptcies, up by 51.2%, and 7,961 Individual Voluntary Arrangements – triple the number recorded in quarter one 2005.
According to the Insolvency Service, the figure was up on 12.5% on the final quarter of last year and is in line with the usual post-Christmas spike when debt worries are at their height.
The figures highlight the growing popularity of IVAs, a formal agreement between lenders and creditors to repay a reduced level of debt, as a tool in tackling over-indebtedness.
The numbers could grow further when new Simple IVA's are introduced next year. These will make it easier for consumers to apply for an IVA.
However, it also shows how close to the edge consumers with debt are living and it is feared that a further rise in interest rates could push more people towards insolvency.
The Bank of England yesterday voted to keep rates on hold at 4.5% but many analysts believe that the next move could be up rather than down.
Howard Archer, UK economist with Global Insight, said: 'The further rise in individual insolvencies highlights the need for many people to improve their personal balance sheets, particularly given that a significant number also have long-term pension concerns.
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