Scottish residents facing increase in financial stress

24/10/2011

More than 5,000 people were declared insolvent in Scotland during the second quarter of 2011, indicating an increase in financial stress throughout the country.

The Accountant in Bankruptcy (AiB) reported that this is a rise of 4 per cent when compared to the same period a year ago.

Whilst bankruptcy statistics did decrease by 8 per cent, Protected Trust Deeds rose by 22 per cent on last year.

Enterprise Minister Fergus Ewing told the BBC: “Personal insolvencies for this period have increased slightly while bankruptcy awards have gone down which may be attributed to the increase in the number of protected trust deeds as well as the success of the Certificate for Sequestration, introduced in November 2010 to give much-needed debt to individuals who previously didn’t qualify.

"The notable increase in debt payment programmes approved under the Debt Arrangement Scheme was expected following AiB's efforts to raise awareness of improvements which were made to the scheme in July this year."

Tags; Current UK Economy, Housing Debt and Bills, Income Worries and Debt,

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