A total of 229 bankruptcy petitions were submitted to the court in the third quarter of this year.

The change in economic circumstances is also reflected in the increasing number of people seeking debt advice at Northampton Citizens Advice Bureau (CAB).

Records show 43 inquiries were made about bankruptcy to the CAB between July and September this year, compared with 33 in the same period last year.

The bureau also recorded more people arriving with credit card debts, debts from unsecured personal loans, fuel debts and mortgage arrears, where there has been a doubling in demand, year-on-year.

Martin Lord, the manager of the Northampton CAB branch, said: "What we're finding is that, although there has been an absolute increase in people seeking debt advice, there is a contingent of clients out there who are going for bankruptcy pretty much because they're desperate and they think it's a straightforward way.

"Many realise how desperate it is, but they can't see an alternative and often come here without one."

Mr Lord added: "Collection agencies are becoming so aggressive in the way they're pursuing people and often the person they approach has tried a lot of things and thought bankruptcy was the only thing left.

"We see this as a failure of creditors to really give people any other options.We really need people to think about all the advantages and disadvantages.

"They need to take advice, about not only bankruptcy but also the alternatives, and think about it carefully.

"We get the impression that people are being panicked into making the decision about bankruptcy, which perhaps would not be in their best interests."

Christopher Cook, the head of accounting and finance at the University of Northampton, said the situation was the consequence of "borrowing too much for too long", exacerbated by the massive drop in things such as house prices.

He said: "The consequences of becoming bankrupt have been less severe.

"Today, it's become almost a life choice and there's encouragement in the way the system works to go bankrupt rather than to spend your life suffering the consequences."

In total, 44 petitions for bankruptcy were made by creditors in the third quarter of this year in Northampton, an increase of 52 per cent.

However, there were no petitions to wind up town-based companies in that same period.

But Graham Goss, the vice-chairman of the Northamptonshire Federation of Small Businesses, said: "I think those of us on the ground can say there will be an increase in businesses going bust and we will start to see businesses in trouble."