Big rise in number of people who declared themselves bankrupt

2.02.00pm GMT Fri 14th Nov 2008

The number of people who declared themselves bankrupt in the last three months was more than 13,500, up 7% since 2007.

A total of 13,653 people in England and Wales petitioned for bankruptcy in the three months to the end of September, the second-highest number recorded by the Ministry of Justice since 1995.

Commenting on the news, Liberal Democrat Shadow Chancellor, Vince Cable said:

"It's now clear that more and more people are being stretched to breaking point.

"We are heading ever deeper into recession and with news that the Eurozone is now going the same way, this is clearly part of a major world slump.

"With the cost of credit remaining sky high, millions of hard-pressed families are struggling to keep their heads above water.

"It is critical that we offer help now to the millions struggling to make ends meet, by cutting taxes and working with the banks to reduce the cost of borrowing and doing all they can to keep people in their homes."