One fifth of Bankrupts under 30

05-04-2006 11:17

The insolvency service has revealed that 18% of Bankruptcies are in the 18-30 age range, up from just 8%, four years ago.

The report, called 'Characteristics of Bankruptcy' revealed the age, and gender of bankruptcies in the UK, along with the amount of debt they were likely to have and the number of creditors they owed.

The average age has fallen from 43 to 41 in the last 4 years, and the most likely people to file for bankruptcy are men, aged between 30 and 39.

The figures are highlighting a worrying trend, considering that the government is facing a huge pensions gap – Debt and bankruptcy among young people means that they can’t save for retirement.

The finding also echo today's call from the Financial Services Authority that young people need better finance education while at school. The City watchdog said a generation is growing up with no savings, no pension and huge debts.

Mike Norris, Insolvency Service, director of policy said, "The research gives us some interesting information about the characteristics of bankrupts over the period. While the profile might be changing in some respects, men in their 30's and 40's continue to account for the largest number of bankruptcies and average scheduled debts continue to fall between £45-50,000."