The number of individuals and businesses filing for bankruptcy as a result of high debt levels increased by almost 30 per cent in the 12 months to June 30th, official figures show.

According to US court data, almost one million bankruptcies occurred during the period, up 28.9 per cent on the previous 12 months.

Non-business bankruptcies made up 96.5 per cent of the 967,831 cases filed, suggesting that debt and inflation are putting increasing pressure on the finances of ordinary families.

The US Bankruptcy Court's sixth district, which covers Kentucky, Michigan, Ohio and Tennessee, saw the highest number of filings, according to the Associated Press.

Retired bankruptcy judge William T Boda told the Columbus Dispatch: "Now with the defaults in mortgage lending in particular, more people are finding that they have no out."

Meanwhile, Reuters reports that billionaire investor Warren Buffett recently called on the US government to tackle the nation's debt problems.

-----------------------------------------------------------------------