Britian is headed for financial meltdown with the number of couples declaring themselves insolvent set to triple between now and 2010, new research has claimed.

Around 13,000 couples in England and Wales applied for insolvency in 2006, 165% more than in 2004.

But the figure could rise even further to 50,000 by 2010, according to a report by the Manchester Business School for accountancy firm Haines Watts IVA.

At the same time, the level of debt built up by couples who have declared themselves bankrupt or taken out an individual voluntary arrangement (IVA) has more than doubled - from £21,000 in 2004 to over £42,000 last year.

Dr Sydney Howell, at Manchester Business School, said: "Some of these couples, especially those in their early 30s, are facing a future with no pension, no savings and huge debts.

"Rising house prices and interest rates, ever-increasing living costs and wages that have not kept up with inflation have all produced crippling debts and left more and more people turning either to bankruptcy or insolvency as their only way out."

Gill Wrigley, insolvency practitioner for Haines Watts, said the group had seen an increasing number of couples applying for IVAs, particularly during the past 12 months.

She said couples accounted for just 10% of the group's clients in 2002, but the figure had now grown to 40% and showed no sign of reducing.

She said: "Young couples, typically those turning 30 are vulnerable because they are in a transitional life-stage where they are settling down, buying a house and wanting to start a family, but still also spending a high proportion of their income on social activities."


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