More people than ever before are choosing to go bankrupt to get out of the misery of spiralling debt.
There has been a record 146 per cent increase in the number of people petitioning for their own bankruptcy in Bath - well above the national average of 85 per cent.
Also on the rise are individual voluntary agreements (IVAs) - an alternative to bankruptcy, where debtors strike a formal deal with creditors to pay back a set amount each month.
Following the release of these worrying figures, the city's Citizens' Advice Bureau is warning people with money problems to get help as soon as possible.
Debt adviser Lesley Vincent said: "Bankruptcy is often a good option for clients when there's no other way out of a debt situation, but we advise people on all their options. It's possible to set up agreements with creditors. The main message is get help."
New insolvency figures from The Department for Constitutional Affairs (DCA) show the number of people declaring themselves bankrupt in Bath, as opposed to being forced into bankruptcy by a creditor, increased from 56 cases in the first quarter of 2005 to 138 cases in the same quarter in 2006.
Bath County Court recorded 564 cases of bankruptcy and IVAs last year - compared to 328 in just the first five months of this year.
John Bangham, director of personal insolvency at accountancy giant KPMG in Bristol, which analysed the DCA figures, said: "This suggests that bankruptcy has lost much of its stigma and is still seen by many as the easier option.
"However, the groundswell of those with spiralling debt problems is so great, that demand for both solutions is increasing dramatically."
According to KPMG's analysis, the average debtor proposing an IVA owes a total of £56,753.
Separate figures from the Insolvency Service show that the average bankrupt has debts of £46,587.
"With average debt levels as high as this, it is unsurprising that we are seeing more and more people choosing personal insolvency as the solution to their problems," said Mr Bangham.
He added part of the increase in IVAs was driven by former students who, following the changes to the law that mean that student loans survive bankruptcy, were resorting to IVAs - which they see as a salvation from debts.
A spokesman from The University of Bath said it was not aware of any similar cases among its students.
However, the Citizens' Advice Bureau has seen a dramatic increase in the number of people calling helplines and asking for guidance.
The volume of callers seeking advice is likely to be a major factor in the high figures - as is the rise in the number and size of commercial firms proactively looking to advise those in financial difficulty.
The Bath Chronicle
