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Scottish insolvency figures
21/07/2010
Official figures from Accountant in Bankruptcy (AiB) report 5,378 personal insolvencies in Scotland for the first quarter of 2010/11.
This represents an increase of 4 per cent on the previous quarter and a decrease of 15 per cent on the same period in the previous year. Personal insolvency data consists of both bankruptcy and protected trust deed (PTD) figures.
The latest official Scottish figures released today, show that there were 3,139 awards of bankruptcy, showing no change on the previous quarter and a decrease of 16 per cent on the same period in the previous year.
Fergus Ewing, Minister for Community Safety, said:
"I am pleased to see that the total number of personal insolvencies, which includes both bankruptcies and protected trust deeds, is significantly less compared to the same quarter of last year and that the number of bankruptcies remains similar to figures of the previous quarter.
"The Scottish Government remains committed to helping those struggling to deal with debt and work is ongoing to bring the Home Owner and Debtor Protection (Scotland) Act 2010 into force later this year. The Act will offer greater protection for homeowners faced with repossession and allow access to bankruptcy for a wider group of people who need this form of debt relief.
"Encouragingly, Debt Payment Programmes (DPPs) under the Debt Arrangement Scheme, which allow people to repay their debt over an extended period of time, have increased by 60 per cent compared to the same quarter of last year. This rise, along with lower numbers in personal bankruptcies is a possible indication that people are seeking advice at an early stage and choosing a debt solution appropriate to their circumstances.
"I also note that the number of businesses entering liquidation or receivership has increased when compared to both the previous quarter and last year's corresponding figures. We will monitor these figures closely."