Personal Insolvency Rates ‘Falling Dramatically’ Across Scotland
April 23, 2015
The number of people entering insolvency as a result of personal debt problems in Scotland is falling dramatically, according to the latest figures from the Accountant in Bankruptcy (AiB).
In fact, personal insolvency rates are now officially at their lowest level in 10 years, with the number of Scots entering either bankruptcy or Protected Trust Deeds down sharply over the past year.
The official figures show that there were 11,161 Scots who entered insolvency in the 12 months up to the end of March 2015, which represents a 19.1 per cent reduction on the figure recorded for the previous year.
In the first three months of this year there were 2,569 individuals across Scotland who entered some form of insolvency, which is the lowest number recorded for a single quarter since the first three months of 2005.
Looking more broadly, the scale of personal insolvencies throughout the country has been declining for each of the past three years and the pace of that decline has been picking up throughout that period.
Additionally, the AiB has said that there were almost 10 per cent fewer debt payment programmes arranged in Scotland in the year to the end of March 2015 as compared with the previous 12 months.
But despite this fall in the number of people entering Debt Arrangement Schemes (DAS), there was 22.5 per cent and £6.8 million more paid back to creditors through these schemes during the past year compared with the year before.
Scotland’s business minister Fergus Ewing welcomed the figures published by the AiB, which also included data showing that the number of insolvencies and liquidations among Scottish companies fell sharply over the past 12 months.
“These are extremely encouraging numbers which illustrate that Scotland’s recovery continues to gather pace,” he said.
“This Government remains committed to doing all it can to ensure fewer and fewer people experience the misery associated with problem debt.”
Ewing went on to emphasise the value of mandatory financial education for anyone who has found themselves being sequestered and the importance of ensuring that anyone with serious debt seeks advice on finding the right solutions to their particular problems.
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