Scottish bankruptcies and Scottish insolvencies increase

It has been revealed that the number of the Scottish population declaring themselves insolvent has increased by 75% over last year. In total the Accountant in Bankruptcy (the central point in the Scottish insolvency sector) has revealed figures which show 5807 people were declared insolvent in the last three months of 2008 and 4000 of these cases went to full bankruptcy hearings, a rise of 154% year-on-year. These figures have been announced at a time when Scottish unemployment has increased by 10% over the last three months alone.

The introduction of the low-income low-asset rules has allowed some of the financially troubled members of the Scottish population to declare themselves bankrupt at a cost of just £100 against substantially more than £1000 just 12 months ago. Protected trust deeds are also becoming more popular north of the border with 1837 instigated in the last quarter of 2008 which is an increase of 5% on the previous year. In simple terms, a protected trust deed will appoint a trustee to look after the person in question’s assets and income and ensure they pay what they can towards their debts.

The situation in Scotland is set to get substantially worse as more enquiries for Scottish protected trust deeds continue to roll in and the national debt helpline, set-up by the government, is being stretched to the limit. While UK banks were until recently happy to write off substantial personal debts were the holders had no ability to pay, the situation is not as easy as it once was and professional advice should be taken from debt counsellors as soon as possible.

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