The number of people who fell so badly behind with their finances last year that they went insolvent is expected to be at a nine-year low in official figures released tomorrow.

The Insolvency Service will reveal the number of people who turned to the three types of formal personal insolvency - bankruptcy, debt relief orders (DROs) and individual voluntary arrangements (IVAs) in the final quarter of 2014.

Figures which have already been released for the first three quarters of 2014 show that during the year so far, a total of 76,749 people across England and Wales went into some form of personal insolvency.

Data from recovery and restructuring firm Baker Tilly suggests that the figures released tomorrow will show that there were just over 22,500 personal insolvencies in England and Wales in the fourth quarter of 2014.

This would put the total number of personal insolvencies last year at around 100,000, which would be the lowest annual total recorded since 2005. Some 100,998 individual insolvencies were recorded in 2013.

The most recent figures released by the Insolvency Service show that bankruptcies, which are often seen as a "last resort", are already running at their lowest levels in 15 years.

Some 4,886 bankruptcy orders were made between July and September last year, marking a fall of almost one fifth (19%) compared with the same period a year ago and the lowest level recorded since the first quarter of 1999.

Baker Tilly predicts that tomorrow's figures will show around 4,500 bankruptcies in the fourth quarter of 2014, alongside around 6,300 DROs and 11,700 IVAs. IVAs are agreements whereby money owed is shared out between creditors.

Mark Sands, personal insolvency partner at Baker Tilly, said: "One notable trend is that creditors are increasingly engaging with debtors to find resolutions, so offers of informal repayment plans are increasingly being accepted over formal insolvency processes."

Low interest rates are also seen as a major factor in helping many people to keep their debt levels manageable - and Mr Sands, who is also vice-president of the Insolvency Practitioners Association (IPA), said he expects the downward trend in personal insolvencies to continue throughout 2015.

But he warned: "With continued low interest rates and falling inflation creating a feel-good factor, there is a danger that many will over-extend themselves, and we are already seeing a significant rise in unsecured (non-mortgage) lending.

"While the current benign economic conditions are undoubtedly benefiting consumers, the long period of low rates may encourage levels of complacency among those who have never experienced a significant rate rise in their adult lives.

"Some people could be in for a shock when rates do eventually start to rise, and could find themselves in difficulty."

Figures released by the British Bankers' Association (BBA) this week showed that annual growth in consumers' borrowing on credit cards, personal loans and overdrafts is running at a six-year high.

Bankruptcy numbers are generally expected to edge down further in the coming months, as new rules should make it easier for people to take out a DRO as an alternative, as well as making it less likely that people will be forced to go bankrupt.

DROs are often dubbed "bankruptcy light" as they are aimed at people with lower amounts of debt but no realistic prospect of paying it off.

Earlier this month, the Government announced plans to increase the minimum level of debt for which someone owed money can force a person into bankruptcy from £750 to £5,000, marking the first time the limits have been revised since 1986.

At the same time, it plans to raise the maximum amount of debt that people can hold if they want to take out a DRO from £15,000 to £20,000. It is estimated that this move will allow around 3,600 more people a year with problem debt to enter a DRO.

The changes are set to come into force in October, subject to parliamentary scrutiny.