The last 12 months have seen a worrying rise in the number of sequestrations in Scotland - the equivalent of bankruptcy south of the border - with 5,998 Scottish bankruptcies in the third quarter of 2008 against just 3,527 during the same period a year ago. The 70% increase year on year is a dramatic rise although when you consider the third quarter of 2008 saw a rise of just 26.7% against the second quarter, this is a trend which has been continuing for sometime.
The total number of those sequestrated or having previous arrangements turned into Protected Trust Deeds - a situation where a debt repayment plan is agreed with creditors - was 14,057 for the first three months of 2008 against a total of 13,814 for the whole of 2007. This is all due to the ongoing recession in the UK although there will be a time lag between the slow down and the ongoing increase in sequestrations in Scotland which will see the number increase well into 2009 and possibly beyond.
The situation in the corporate market is starting to worsen as well with the Scottish economy coming under serious pressure in line with the rest of the UK. Trust Deed Trustees will be busy over the next 18 months with a dramatic increase in workload expected. If you are suffering from any kind of financial difficulties means it is essential that you take the necessary advice as soon as possible as Protected Trust Deeds and IVAs are there to protect those in trouble.
