THE number of people declaring themselves bankrupt has rocketed.

Figures just released by the Government show that in the first three months of this year 76 people declared themselves insolvent rather than be forced into bankruptcy by a creditor compared to 44 in the same period in 2004.

Financial experts say that although the spurt is in part due to a lessening of the effects of bankruptcy, which became law last year, it is still worrying as it indicates the high level of debt currently in the country.

It comes a week after the Adver reported that home repossessions have doubled in Swindon in the last year and a third across the country.

Financial experts have said there is a "big black cloud of debt" over the country.

John Bangham, director of personal insolvency in the south west office of KPMG, said: "This increase in bankruptcy numbers has been fuelled by the changes to personal insolvency brought about by the Enterprise Act that came into effect a year ago.

"In many people's eyes, this act made bankruptcy a far simpler and more attractive proposition and removed some of the stiffer penalties previously meted out to bankrupts in the UK.

"It will be interesting to see if this trend reverses when, as expected, more Bankruptcy Restriction Orders are issued which can impose far tighter restrictions on a bankrupt for up to 15 years."

Total bankruptcies are also on the rise across the country and in Swindon locally the figures have gone up from 12 last year to 23 this time around. The Department for Constitutional Affairs has also released figures that show four companies were wound up in the first three months of 2005 in Swindon, compared to one last year.

Nationally 37,886 people have been made bankrupt in the year up to March 31, 2005, 30 per cent more than in the year up to March 31, 2004.

Mr Bangham said: "These figures do prompt the question of where this is all going to end.

"It is interesting that these statistics are released a week after official Government figures reveal there has been a 35 per cent increase in mortgage repossession actions on the same period last year.

"The two trends are not unrelated.

"There is a big black cloud of debt hanging over the UK."