THE number of people declaring themselves bankrupt is continuing to rise across the region.

Official insolvency figures released yesterday by the Ministry of Justice show a rise of 19 per cent, in both the North-East and North Yorkshire, of people petitioning for their own bankruptcy, rather than being forced into bankruptcy by a creditor.

Analysis of the figures by KPMG has shown that the North-East town with the highest rise is Darlington - which saw a 51 per cent increase from 65 cases in the last three months compared with 43 at the same time in 2006.

Overall in the North-East, the number of cases has risen from 679 in the second quarter of last year to 805 cases, while in North Yorkshire it rose from 197 to 235.

Other parts of the region saw smaller increases - Teesside 33 per cent, Newcastle 15 per cent, Sunderland 14 per cent and Durham five per cent.

However, in York and Harrogate there was a decrease in bankruptcies, down by four per cent and 42 per cent respectively.

Paul Bateman, KPMG director of personal insolvencies in the North said the average debtor proposing an IVA owes a total of £48,000.

He added: "With average debt levels as high as this, five increases in interest rates in the last year, and a further rise on the cards, the pressure on the over indebted continues to increase.

"Those who have managed to keep their head above water as a result of cheap fixed-term mortgage deals could also soon be struggling.

"It is unsurprising that we are seeing more and more people choosing personal insolvency as the solution to their problems."

Mike Hill, manager of Darlington Citizens Advice Bureau (CAB), said: "The number of people coming to us with debt problems is our fastest growing area. We have had to take on two workers.

"I think it's due to the amount of lending that goes on and the small increases in the base rate are reflecting through into mortgages.

"Darlington also has a fast- growing property market and prices are rising, and I suspect it's a combination of all these factors.

"These figures do not reflect the misery that this causes individuals."

Darlington CAB is holding a debt advice day on Wednesday, September 5, from 10am to 6pm, at its offices in the Market Place.