Seven in 10 insolvency practitioners expect the number of cases they deal with to keep on rising for the remainder of 2008, a new study has found.

Of those professionals questioned by the industry body R3, 90% said that they expect the number of businesses filing for insolvency to rise in the next six months, with 67% stating that they have already seen a rise in cases in the first half of the year.

In addition, with growing numbers of Britons now struggling to cope with the general rising cost of living, 70% of those polled stated that they believe that the tough economic conditions will lead to more individuals being forced to take out Individual Voluntary Arrangements (IVAs).

One in three said that they had already seen a jump in the number of applications for personal insolvencies, with 14% saying that they had been contacted by individuals earning in excess of £30,000 a year.

Nick O'Reilly, president of R3, commented: "These findings come from a profession that is at the coalface of the UK economy, dealing with businesses in financial trouble covering a huge range of sectors.

"Out of those, construction, retail and leisure are looking especially vulnerable."