The number of people under 30 declaring themselves bankrupt has “increased significantly, new figures have revealed.

Almost 15% of all declared bankrupts in the year to March 31, 2004, were 30 or younger, PricewaterhouseCoopers reported – almost double the proportion of two years previously.

Young women were now becoming more likely to declare themselves bankrupt, the figures revealed. Although men accounted for 63% of all bankruptcies in 2003/2004, the gap between male and female bankrupts is narrowing, with 45% more women declaring themselves bankrupt in 2003/2004 than in 2001/2002. PricewaterhouseCoopers said that the figures from the Insolvency Service showed that there was now a “clear trend” towards more women becoming bankrupt.

Consumer debt problems are thought to be behind the rising number of bankruptcies.

According to figures released by the Department of Trade and Industry in February, 46,651 people become bankrupt or entered into an individual voluntary arrangement (IVA) in England and Wales in 2004 – an increase of 31% from the previous year.

However, the figures showed that bankrupts were now less likely to be self-employed and in business, with a fall in the number of self-employed people declaring bankruptcy from 58% in 1996 to under 27% in 2004. In contrast, the number of employees and unemployed bankrupts increased by 288% during the same period.

Commenting on the figures, Patrick Boyden, partner in the Business Recovery Services practice at PricewaterhouseCoopers, said: “A ‘new bankrupt’ is emerging who is more likely to be female, under 30 and has not been in business before. Consumer debt levels among young people and women appear to have contributed to the explosion of bankruptcies last year and many individuals mistakenly believe bankruptcy is now a softer option.”

(KMcA/SP)