More British people will declare themselves bankrupt or take out an Individual Voluntary Arrangement (IVA) in the coming year, according to 70 per cent of insolvency practitioners.
A total of 68 per cent expected an increase in the next six months, the survey by R3, published by the Press Association, found.
A third of those questioned said they had already witnessed a rise in serious personal debt problems.
Insolvency practitioners said people considered debt a way of life and irresponsible borrowing and lending have exacerbated the issue.
People from a range of incomes are declaring bankruptcy according to R3, with 14 per cent of practitioners saying they had given debt advice to people earning between £30,000 and £39,000.
President of R3 Nick O’Reilly said the research “indicates we are unfortunately in for a long period of protracted pain”.
Additionally, 90 per cent predicted an increase in business insolvencies, particularly among retail, leisure and construction companies.