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Bankruptcy enquiries `up 53%`

13/09/2007

Enquiries into bankruptcy procedures from worried consumers rose by 53 per cent in the last year, according to new figures.

At least 1.7 million people needed help with money problems in the last financial year, according to Citizens Advice. The number wanting advice about bankruptcy rose 53 per cent to 99,000.

Record numbers of people are being caught in the debt trap with debt enquiries rising by 20 per cent in the last year. Citizens Advice centres across the country dealt with 6,600 new cases of debt every day.

Citizens Advice chief executive David Harker said: "These figures are worrying evidence that while many have enjoyed the benefits of the credit boom, a large and growing number of people continues to pay the price, becoming overwhelmed by serious debt that can have a devastating impact on their lives."

Recent figures from Credit Action found that there were 26,956 individual insolvencies, either bankruptcies or individual voluntary arrangements (IVAs) in England and Wales in the second quarter of 2007.

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