BRIGHTON and Hove has emerged as the debt capital of Sussex with record numbers of people sliding into bankruptcy and dozens more facing the threat of losing their homes.

Government figures last night showed the city had the highest rate of household repossessions in the county as accountants estimated personal debt in Sussex had smashed through the £7 billion barrier for the first time since the recession-hit Nineties.

There were 54 successful repossession orders granted by the courts to mortgage lenders in Brighton and Hove in just four months this year.

In Hastings 49 orders were granted against families in debt, while Eastbourne was ranked third with 48.

Even in Chichester, seen as one of the most affluent parts of the county, there were 37 repossession orders.

For the second year running there were more bankruptcies filed in Sussex than in every other South-East county except Kent.

Brighton and Hove topped the bankruptcy league ahead of Hastings and Eastbourne for the first quarter of 2006. In the first three months of 2006, 371 people in Brighton and Hove have been declared bankrupt compared to 242 for the same period a year ago.

In Eastbourne that figure has risen from 56 in 2005 to 93 a year later, and in Hastings from 44 to 92.

Leading accountants warned of the threat from a "spend now, worry later" culture as the number of personal bankruptcies in Sussex leapt from 1,279 in the first three months of 2005 to 2,119 for the same period a year later.

Of those, 460 were in Brighton and Hove, Hastings and Eastbourne.

A surge in court orders for home repossessions has raised concerns over the rising numbers of people tempted to sink too deep into the red.

There was a total 258 orders in the county over the first quarter - up 93 per cent from a year earlier.

A spokesman for the Citizens Advice Bureau (CAB) said: "Daily we get calls from people worried about repossession and usually the first thing we say is spending must be reigned in.

"Our offices in Sussex are deluged with calls about repossessions and the threat of what may happen. It's really no surprise to hear that the levels of consumer debt here are so high. We've known that for some time."

Experts said the figures also provided the latest evidence that a new, more lenient bankruptcy regime, introduced in 2004, was encouraging the view of bankruptcy as a "quick fix" to financial woes.

Under the regime, aimed at encouraging failed entrepreneurs to try again, bankrupts must wait 12 months or less to be released from a bankruptcy order. Previously they had to wait for three years to be discharged.

Restrictions faced by bankrupts, such as denial of credit of more than £250 and denial of freedom to become a company director, are also now cleared after 12 months.

Brighton and Hove Business Forum said the number of people seeking Individual Voluntary Arrangements, had doubled since last year.

A survey by Worthing-

based insolvency practitioners Nancollas Greer carried out among people with most serious debts revealed that on average men owed £35,000 and women £26,500.

The company said consumers trying to obtain an "aspirational lifestyle" were the biggest problem.

Sarah Nancollas, a director of NancollasGreer, said: "The largest increases are typically occurring around cities such as Brighton where the cost of living is high. Prices are on the up in every aspect of our lives and many people are over-stretching themselves, relying on credit to maintain their desired lifestyle."