The north-east has seen a 34 per cent rise in the number of people filing for bankruptcy in the first quarter of 2008.
This is according to analysis by global services firm KPMG, the north-east’s bankruptcy figures have increased by three times the UK average between January and March, reports the Northern Echo.
Sunderland – at 77 per cent – and Newcastle with 31 per cent experienced the highest number of people filing for bankruptcy.
Commenting to the paper on the bankruptcy figures, Paul Bateman, head of personal insolvency in the North of England for KPMG, said Britons are struggling with higher mortgage, fuel and food costs.
He said many people will take formal debt management steps in the coming months and drive up personal insolvencies.
“Many others may be able to take advantage of informal arrangements and tighter budgeting to avoid the worst effects of over-indebtedness,” Mr Bateman added.
His advice to people wishing to clear debt is “to take advice on all the options”.
Earlier this month uSwitch warned that if current insolvency rates continue throughout 2008, this year could see nearly 104,000 casualties in total.