According to the latest figures, one person in the Dungannon district of Northern Ireland starts bankruptcy proceedings and two people face their homes being repossessed every week.

Also included in the government-released figures is the statistic that shows that since the start of the recession back in 2007, bankruptcy rates in Dungannon, the third largest town in the county of Tyrone, have risen by as much as 69 per cent.

The Dungannon district recorded the third highest bankruptcy figures in all of Northern Ireland’s rural councils last year, with 76 cases compared to Armagh’s 62 and Cookstown’s 40. Before the start of the recession, there were only around 45 cases recorded each year.

In terms of mortgage repossession cases, Dungannon has seen an 83 per cent increase in the number of residents who face losing their homes since the start of the recession. The figure stood at just 66 in 2007, but in 2010 this number had leapt to 121.

Whilst bankruptcy levels in the rest of the UK seem to have dropped, this trend has not been seen in Northern Ireland. Across the whole of the country last year, there were 1,954 cases recorded. Overall, the personal insolvency figures show an increase of 18 per cent in the number of people either going bankrupt or choosing to use IVAs (Individual Voluntary Arrangements) compared to the same period last year.

Commenting on the situation, the chief economist at Ulster Bank, Richard Ramsey, said:

“Worryingly, these figures come before the public expenditure cuts and cuts in benefits which we can expect this financial year. All these factors are squeezing household budgets.”

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