New laws on bankruptcy could lead to a rise in personal debt problems in Brighton and Hove, according to a firm of accountants.

Baker Tilly reckons the Enterprise Act will encourage some people to spend, spend, spend - then simply declare themselves bankrupt.

The Act means, irrespective of the size of debt incurred, someone can be declared bankrupt for no more than a year.

The idea is to encourage entrepreneurial spirit among small businesses but Andrew White, from the Baker Tilly in Brighton, said: "If the stigma of becoming insolvent is removed people might become more careless with their money and less concerned about getting into debt.

"We expect people to be more tempted towards bankruptcy."

Tuesday April 13, 2004