Pensioners are seeing the biggest rise in bankruptcy

Pensioners are seeing the biggest rise in bankruptcy of all age groups, according to figures from the Insolvency Service.

There has been a six-fold increase in the number of over-65s being declared bankrupt over the past decade and the figures are particularly bad for female pensioners with a ten-fold increase in bankruptcies for this group between 2000 and 2009.

The number of pensioners being declared bankrupt is increasing 50 per cent faster than other age groups, although the average age for people to be made bankrupt is 41.

Men represent 60 per cent of all bankruptcies, but women’s share of bankruptcies has increased from 29 per cent in 2000 to 40 per cent in 2009.

The total number of bankruptcies has begun to decline after reaching a record high in 2009.

The Insolvency Service is running a “dealing with your debt” campaign this week in conjunction with Citizens’ Advice, the Consumer Credit Counselling Service and the Money Advice Trust, in order to encourage people to seek help from free and impartial sources before they become overwhelmed by their debts.

Stephen Speed, chief executive of the Insolvency Service, said: “Although personal insolvency levels are no longer rising, they remain stubbornly high, reflecting the high levels of personal debt that persist across the country.

“Prevention is much better than cure as far as personal finances are concerned. Review your personal finances frequently and make sure you are not taking on debt that you can’t afford to repay.

“If you are getting into trouble, act quickly and seek advice about how to deal with it. There are plenty of sources of advice, many of which are available free of charge.

“If insolvency looms then remember that you have choices. Discuss these with your adviser and make sure you understand which one is best for you.”