More families in the resort face the heartache of losing their home than in any other area in Lancashire, shocking new Government figures reveal today.

And one Blackpool man, whose family risk losing their home and business as his wife fights for her life, said: "We're in an impossible situation."

According to Government figures, there were 1,115 claims for repossession made in Blackpool in 2007, an increase of six per cent on the previous year.

In Lancashire as a whole, there were 4,179 repossession orders, up 13 per cent.

John and Brenda Begley of Osborne Road, South Shore, received a letter this week warning them that their home, The Southcliffe Guest House, faces being repossessed unless they can repay arrears built up while Mrs Begley, 54, fights breast cancer.

Mr Begley, 50, says he works every hour he can in his maintenance job at Pontins, South Shore, after the family had to close the guest house due to Mrs Begley's illness.

But he fears the couple and daughter Chardelle, 17, will end up homeless.

"We're in an impossible situation," he said.

"I'm so angry it's like nobody respects the fact that my wife has a life threatening illness.

"We can't run the guest house because Brenda is fighting for her life and we've still got to pay business rates and the bills are really mounting up.

"It's our home at stake as well.

"We have a young daughter and we're worried our home and our businesses could be taken away. I'm trying to work as much as I can but I have to look after Brenda too."

A spokesman for their bank, Abbey, said the firm has no plans at present to repossess the home.

She said: "Abbey is currently seeking a more permanent payment resolution for the Begleys and we are looking forward to arranging this with them imminently."

Edwina Toner, who works with Blackpool's homeless at Sacred Heart Church in Talbot Road, warned: "Among the people I have seen are two men whose homes have been repossessed.

"For them it has led to marriage breakdown. One man had been in a homeless hostel for a while and when he got a flat, he had nothing to put in it.

"To see a grown man reduced to tears because he had no curtains or bedding is a terrible thing.

"With repossession comes poverty and it is the start of a downward spiral."

Michael Edwards, company secretary of Blackpool Moneyline, said: "More people are coming to us with difficulty covering their household bills. There is a significant increase."

Shelter North West regional manager Anne Simmonite said: "These figures are a wake up call to Government that urgent action needs to be taken to prevent more people across the North West from facing the nightmare of repossession and homelessness."

National figures show repossessions across the UK reached 27,100 in 2007 and are predicted to rise to 45,000 this year, reaching levels last seen in the mid-nineties.