A record number of people went insolvent during the summer in an indication that the UK debt crisis is worsening, new figures showed.

Statistics from the Government’s Insolvency Service revealed that a total of 27,644 people went bankrupt or took out an individual voluntary arrangement between July and September.

Broken down, the figures show 15,416 people went bankrupt while 12,228 people opted for an IVA.

The combined figure was an increase on the 26,021 people who went insolvent in the previous quarter.

Experts believe the figures could have already reached a parity, with IVAs boosted by aggressing advertising by debt management firms and increased pressure on household budgets.

The hike in IVAs increases concern held by many that they are being “over sold” to people who would be better off looking at other ways of dealing with debt like a debt consolidation loans or a more flexible mortgage.

Malcolm Hurlston, chairman of the Consumer Credit Counselling Service, said: “We are concerned by the narrowing gap between the number of bankruptcies and IVAs.

“If the current trend continues the number of IVAs will overtake the number of bankruptcy next year and that is an indication that the IVA solution is becoming more popular than is good for people.”