16% rise in Scottish Trust Deeds year-on-year

26/10/2009

Debt problems among Scots have risen since last year, new figures from the Accountant in bankruptcy (AiB) suggest.

The amount of Protected Trust Deeds (PTDs) recorded over the second quarter of the 2009 financial year stood at 2,263.

This a 16 per cent increase from the same period a year before and a 12 per cent decline from the first quarter.

PTDs are similar to the Individual Voluntary Arrangements used by debtors elsewhere in the UK.

They consist of a deed which transfers the estate of a debtor to a trustee, commonly for three years.

Holders of the deeds are given a repayment schedule for their debts - including money owed on credit cards, personal loans and mortgages.

Among the advantages of taking out a formal repayment arrangement of this kind is that interest on debts is frozen and creditors cannot take legal action against the debtor.

Kevin Still, EuroDebt director, commented: "The figures in Scotland contrast with those in England & Wales, where there were 33,073 individual insolvencies in the same period. This was an increase of 27.4 per cent on the same period in 2008. This was made up of 18,870 bankruptcies, 12,225 IVAs and 1,978 Debt Relief Orders (DROs), which came in to force in April 2009.

"In the second quarter of 2009, 86 per cent of bankruptcies were made on the petition of the debtor!"

The AiB data also showed that there were around 5,800 personal insolvencies in Scotland over the second quarter - a decrease of eight per cent on the first quarter.

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle, Recent Graduate Debt,

• Share
• 
• 
• Store
• 
• Follow
•