Recession is plunging more people into bankruptcy across the county.

According to business advisory firm KPMG, the latest official insolvency figures show an alarming 28 per cent rise in Kent and Medway to 549 cases in the first quarter of 2009.

The statistics cover people petitioning for their own personal bankruptcy in courts as opposed to being forced into bankruptcy by a creditor.

They reveal Maidstone County Court has seen the biggest increase - up 55 per cent - with courts in Canterbury (up 40 per cent), Tunbridge Wells (up 17 per cent), and Medway (up 11 per cent) all dealing with bigger caseloads.

Rising unemployment and falling property prices, with consumers having little or no equity in their homes, are being blamed for the increase.

Nationally, the figures show a 33 per cent rise. There was also an increase in the use of Individual Voluntary Arrangements (s) which went up 11 per cent.

The figures reveal that 17,606 people successfully petitioned the Court to bankrupt themselves and 9,807 agreed an IVA in the quarter January to March 2009.

The average debt owed by someone entering an IVA in the last quarter was £50,020. In the same period more than 500 people entered into an IVA with debts in excess of £100,000.

Mark Sands, restructuring director at KPMG, said: "This means that a total of 27,413 people took the potentially life-changing step of placing themselves into personal insolvency; this proportion of people choosing to ‘jump before they were pushed’ represents an incredible 91 per cent of all personal insolvencies.

"Despite the credit crunch, levels of consumer debt in the system remain at record levels. Combined with the highest unemployment levels since 1997 and rapidly increasing negative equity, it is no surprise that we are seeing the highest levels of personal insolvencies since records began.

"Whilst consumers will fight to keep their jobs and their family homes, for those who lose both there is often little reason for someone with debts and minimal assets not to declare themselves bankrupt."

New Debt Relief Orders (DROs) allow consumers with debts of less than £15,000, and minimal assets or surplus income, to write off their debts without entering into a full blown bankruptcy.

Mr Sands added: "We expect this new approach to increase the number of people using personal insolvency as the way to deal with their debts. In KPMG’s view, DROs, together with the expected increase in unemployment, are likely to lead to record levels of personal insolvency of more than 150,000 in 2009."