Break-up linked to bankruptcy says report

A new survey has revealed a disturbing relationship between the UK's rising levels of debt and divorce.

The troubled finances of an ex-partner was found to be the underlying cause of unmanageable debt in 28 per cent of bankruptcy filings, said Debt Free Direct.

People going through a divorce were also a third more likely to file for bankruptcy than others.

"Typically, people in a relationship will take on debts in joint names, never believing that the relationship will end," said Debt Free Direct spokesman Derek Oakley.

"But when it does the effect of divorce or separation can seriously heighten the impact of the debt problem."

He added that the issue can be particularly distressing when an ex-partner is unaware of the debts and has taken no steps to minimise their exposure to the fall-out.

"For example, even after divorce, many couples still hold credit or store cards in joint names," said Mr Oakley.

"After separation it's important to advise the credit company to terminate the joint card.

"Unless you do this you could be pursued for payments on debt that your ex-partner has run up."

Women are more likely to be left with no option but filing for bankruptcy, with 14 per cent more women than men filing for insolvency protection.

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