There has been a stark rise in the number of people declaring personal bankruptcy and entering into IVA agreements within the Northern parts of Britain.

According to accountancy group KPMG, certain areas within the North have seen instances of Bankruptcy more than treble during the first quarter of 2008. Both Newcastle and Sunderland have been identified as the major hotspots for this rise with the increases standing at 30% and 75% respectively.

A spokesperson for the group commented that a culmination of different economic factors such as a dramatic rise in the cost of food as well as household bills and of course mortgage repayments had begun to take its toll on thousands of people across the UK, however, as demonstrated within these findings Britain’s less financially prosperous areas are far less able to acclimatise under the increasing financial strains and thus a rise in insolvency within these lower earning areas is almost inevitable.

A separate survey has also revealed that some 35% of Britons are in the process of reviewing their personal budgets, with a view to assigning new buffer zones to their expenditure and to cover themselves against any further increases to the overall cost of living.