THE rise in the number of people in Bournemouth declaring themselves bankrupt is running at almost double the national average, according to latest official statistics - but financial experts warn this could be just the tip of the iceberg.

Analysis, carried out by South Coast financial advisers KPMG, following the release of the current insolvency figures from the Ministry of Justice, shows that voluntary bankruptcy actions are continuing to rise in the town.

Statistics show a seven per cent increase in people petitioning for their own bankruptcy in Bournemouth, as opposed to being forced into bankruptcy by a creditor - from 216 cases in the first quarter of 2008 to 232 cases in the second quarter.

Nationally, the three months ended June 30 saw an increase of four per cent in the number of people making themselves bankrupt in England and Wales compared to the previous quarter.

At the same time there was a similar increase in the use of Individual Voluntary Arrangements (IVA), which rose seven per cent in the most recent quarter, a reversal of the trend over the past five quarters which has seen IVAs register a total fall of 13 per cent over the past year.

While on the face of it Bournemouth appears to be doing badly, fuller analysis shows that in fact the town has yet to feel the full force of the economic downturn.

Mark Sands, director of personal insolvency at KPMG's south coast office, said: "If you look at the wider picture, Bournemouth is actually doing quite well at the moment.

"For example, bankruptcies in Chesterfield are running at 62 per cent and in Doncaster they are at 64 per cent.

"What is affecting the figures is that in some areas the number of cases is falling so the average figure appears low."

He added that Bournemouth has yet to feel the full impact of the credit crunch, which could hit at any time as the retail and construction industries slow down.

This, he predicts, will be followed by job losses in the professional practices such as estate agents and solicitors.

"About half the business for typical High Street solicitors comes from commercial and residential property which is slowing rapidly and in the long-term new legislation on de-regulation will allow outside organisations to provide legal advice and increase the competition."