Number of bankrupt Scots increases by 2%

THE number of people who went bankrupt in Scotland increased by 2 per cent last year, new figures have revealed.

Accountant in Bankruptcy, a Scottish insolvency service, reported 4,664 insolvencies in the third quarter of 2011 to 2012, up by 2 per cent on the same period in the previous year, but down 13 per cent on the previous quarter.

There was also a rise in bankruptcy awards - up by 5 per cent to 2,615 over the same annual period.

And 280 Scottish companies became insolvent or went into receivership during this period.

Fergus Ewing, the minister with responsibility for debt management, said: “Personal insolvencies have gone down significantly this quarter as both bankruptcies and protected trust deeds have decreased, the latter by nearly one fifth.

“It is encouraging to see that bankruptcies have fallen for the second successive quarter. Likewise, the 22 per cent drop in corporate insolvencies compared to last quarter is positive news.

“However, it remains a challenging time for Scotland’s debtors as personal insolvencies are still slightly up on the equivalent period last year.”