And with 40 now at risk of joining the seven already bankrupt, Dr Jonathan Carr-West said more ordinary people will start to feel the crippling effects of slashing vital services.
The Mirror can today reveal a black hole of at least £1billion in council budgets.
Local Government Information Unit head Dr Carr-West warned No10's £500million emergency funding announced last week will not be enough to stop a string of councils going bust under Section 114 notices.
He told how desperate town hall chiefs have never been so worried about the future of the services they provide, especially for the vulnerable in society.
Care homes, buses, bin libraries, collections, street sweeping and lights face cuts as councils are further squeezed.
Dr Carr-West said: "The councils that are warning they might have to issue a Section 114 notice are just the tip of the iceberg. There are a whole bunch who think they are in serious risk of issuing a 114 but they haven't made it public.
"When I talk to council leaders they consistently tell me this is the worst it's ever been, that they are more worried than they've ever been. There's a fairly familiar story that central government funding has been reduced by nearly 50% overall, but for some councils that is even around 90%.
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