The number of people declaring themselves bankrupt in Bradford has risen by more than a third in 12 months, shock new figures have revealed.

A total of 116 individual bankruptcy petitions were filed in Bradford in the three months to the end of June, compared to 79 in the same period last year - a 37 per cent increase.

Personal bankruptcies - blamed on rising utility bills and credit card debt - also soared in the West Yorkshire region from 294 to 390.

This means the number of people choosing to declare themselves bankrupt in Bradford is higher than the 32 per cent increase in the region as a whole.

The figures released by the Department of Constitutional Affairs offer strong evidence that a growing number of people in the region are struggling to pay off their debts.

However, the number of people being forced to declare themselves bankrupt by creditors in Bradford fell by 31 per cent - much higher than West Yorkshire decrease of 20 per cent.

In the three-month period ending in June only 60 people were forced by creditors to go bankrupt - a significant decrease from 88 the year before. In West Yorkshire the number fell from 203 to 161.

Despite the increase in the number of people opting for bankruptcy, figures from county courts appear to show companies are coping far better than individuals with rising costs.

The number of firms subject to a winding-up petition during the period fell from four to just one in the same period.

In West Yorkshire the number fell from 271 to 265.

The figures come as the Government yesterday announced new initiatives to tackle the spiralling problem of over-indebtedness.

It outlines actions for the Government, the credit industry and consumer groups to help people struggling with debts and includes an introduction of the Consumer Credit Act 2006 with new laws to improve responsible lending and borrowing.

It includes £120 million funding for financial inclusion initiatives including £45m funding the launch of more free face-to-face debt advice around the UK and £6m to fund outreach initiatives.

Keighley Labour MP Ann Cryer said the Government needed to introduce tougher laws stopping celebrities and companies endorsing loans, which claim to solve financial problems, as a start to tackling the common problem.

She said: "The answer is debt advice and to put a stop to people believing taking out a loan will solve all their problems.

"I have no doubt such debt can lead to suicide.

"There is no escaping it when you are in it. Not a days goes past when I do not receive post through my door about debt help and loans. I would be in favour of the Government taking a stronger line regarding loans but I do welcome the free debt advice. If people continue to opt for bankruptcy the cost will continue to fall on the taxpayer."

Mrs Cryer, along with Calder Valley MP Chris McCafferty and 67 other MPs, has signed an early day motion taking a swipe at TV brainbox Carol Vorderman for endorsing consolidation loans secured against borrowers' homes.

Under debt consolidation arrangements, personal debts like credit and store cards are amalgamated into one debt which is then secured against the debtor's property.

The EDM calls for debt companies to sign an "advertising charter" which would see them only targeting those individuals who would benefit from secured debt.

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