Paul White of Belgravia Insurance Consultants said there is also less stigma attached to declarations of bankruptcy than in the past.

In addition, the number of people choosing individual voluntary arrangements (IVAs) has also increased, he said.

This increase has been so significant that many of these are not actually conducted in person but remotely, according to Mr White.

“If it can be done remotely then it’s really more of a streamlined process rather than someone sitting down face-to-face,” he said.

“There is more of this remote advice going on so cases like these are being treated more casually.”

Changes in bankruptcy laws introduced in 2004 have made it easier for people to declare themselves bankrupt, while the duration times of bankruptcy have also been reduced.

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