The Insolvency Service has released figures showing that the number of people being declared insolvent is at its highest since records began.
With 135,089 people being declared insolvent, the figures for individual insolvencies were an increase of 0.7 per cent on 2009.
The figures show twice as many personal insolvencies declared as compared to 2005.
The 135,089 personal insolvencies include individual voluntary arrangements, debt relief orders, and bankruptcies.
Debt charity the Consumer Credit Service has warned that the rise is likely to continue through 2011.
The increase in the cost of living alongside pay freezes, cuts and unemployment is likely to contribute to a rise.
The number of bankruptcies has fallen for the last quarter of 2010.
12,049 declarations of bankruptcy represents a fall of 29 per cent on the final quarter of 2009.