Stigma preventing necessary bankruptcy, says CCCS

– most of whom are single women – many chose not to do so because of the social stigma.

This is in contrast with new research by the Bank of England that found people are much more likely to go bankrupt because other people have done so.

Malcolm Hurlston, the chairman of CCCS, said: “‘More than half the people advise to go for bankruptcy fail to go through with the process, missing the best solution to their debt problem.

“We are worried that stigma and cost are causing people – and women in particular – undue distress.”

Two-thirds of people who declare bankruptcy are men, according to the CCCS.

Rather than admit over-spending, many of the CCCS’ clients blamed factors such as illness, divorce, separation and unemployment.

However, around a fifth of those recommended to go bankrupt are so poor they cannot afford the £475 in administration fees and court costs.