Bankruptcies fall in Scotland
October 7, 2013
According to new statistics from Scotland’s insolvency service, Accountant in Bankruptcy (AIB), bankruptcy figures in Scotland have decreased by 20% in the last year.
The number of Scots taking out Debt Payment Programmes (DPPs) under the Debt Arrangement Scheme (DAS) has also increased by 40%. Over 4,600 DPPs were approved in Scotland in 2012-2013, which is now ten times the amount awarded five years ago, in 2007-2008.
Statistics show that in the 2012-2013 financial year, a total of £23m worth of debt was repaid using the Scottish Government’s DAS scheme, along with an 11% reduction in Scottish residents taking out trust deeds.
The DAS was introduced by the Scottish Government in 2004, to help people in Scotland who may be struggling to pay off affordable debts whilst also disabling creditors from attempting to recover them. The DAS allows debtors an extended period of time to repay the debt in a way that is more affordable. Statistics show that this is an increasingly popular way of repaying debt without facing bankruptcy.
Chief executive for AiB, Rosemary Winter-Scott, said: “The figures within the report show that despite the current financial climate there has been a reduction in bankruptcies awarded and protected trust deeds registered, in comparison to the previous year. There has however been a marked increase in the number of approved debt payment programmes under the Debt Arrangement Scheme which shows that more people are using DAS as an alternative to personal insolvency.”
Many of us struggle with debt at some point in our lives, so if you’re struggling with your repayments and need honest, impartial advice on arranging a solution that’s practical for you, call us today and speak with one of our experienced team who can advise you on the next steps to making your financial situation more manageable.
Debt solutions can be complicated, so it’s always useful to obtain professional advice from a knowledgeable source, something Scotland Debt Solutions is qualified to provide. Why not contact us today and find out more about how we can help you to get your finances under control.
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