60 Scots a day going broke, figures show

Published on 26/07/2012 00:00

MORE than 60 Scots a day are going bust, with thousands declared insolvent during the first three months of 2012-13, new figures have revealed.

There were 5,601 personal insolvencies in Scotland in the first quarter of the 2012-13 period – a 14.9 per cent increase on the previous quarter and a 5.3 per cent increase on the same period in the previous year.

Almost five firms a day are also going bust, with 420 notices of Scottish registered companies becoming insolvent or entering receivership in the first quarter of 2012-13.

That is a 9.1 per cent increase on the previous quarter and a 22.4 per cent increase on 
the same period the previous year.

Accountant in Bankruptcy (AiB), Scotland’s insolvency service, which published the figures yesterday, said that the sharp rise could be explained in part by more people applying for bankruptcy before higher fees were introduced in June,

Figures for the debt arrangement scheme, an alternative to going bankrupt, show that more debt payment programmes were approved, up 56.9 per cent from the previous quarter to 1,478 and up 129.9 per cent compared with the same quarter of last year.

Enterprise minister Fergus Ewing said: “The rise in bankruptcies, specifically applications for bankruptcy from debtors, can partly be attributed to a rush prior to 1 June before application fees increased. I fully expect this trend not to continue into the next quarter.

“However, we must not be complacent and instead face up to the challenge that these difficult economic times place upon us.”

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