The number of individuals filing for bankruptcy almost reached the one million mark in the 12 months to June as consumers battle with rising mortgage costs and debt repayments.

According to figures from the Administrative Office of the US Courts, personal bankruptcies filed in federal courts totaled 934,009 during the period, up from 727,167 during the previous 12 months, CNN Money reports.

Commenting on the figures, Professor Jack Williams, a scholar at the American Banking Institute, said: "I expect bankruptcies in 2008 to exceed 1.2 million filings."

Beyond this year, personal bankruptcies could rise by a further 15 to 20 per cent as rising prices put pressure on household budgets, he added.

The increase comes despite the passing of a bill in 2005 aimed at reducing the number of consumers being declared insolvent.

Meanwhile, a new survey by First Command shows that in the three months to September, US consumers were paying off more of their debt and making bigger contributions to their savings.

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