The Scottish Government says a growing number of people are facing "increased financial pressures" as the economic situation becomes increasingly uncertain.
A total of 12,779 Scots were declared insolvent in 2018/19 - a rise of 20% om the previous year. This included 4,862 who went bankrupt and 7,917 who were placed into Protected Trust Deeds. The figures have been rising steadily for the past three years. The number of firms gong bust was also up by 9.3% to 966, according to official figures released by Accountant in Bankruptcy (AiB).
Business minister Jamie Hepburn said: “These figures highlight the challenging economic times we are facing with more Scots experiencing increased financial pressures.
“The ongoing uncertainty around EU exit, alongside the challenges of the roll out of Universal Credit, bear much of the blame."
There has also been an increase in the number of Scots accessing the Scottish Debt Arrangement Scheme which helps them to pay back their debts.
“In this climate it is more important than ever that people encountering financial difficulty seek early advice and the appropriate solution," Mr Hepburn added.
A total of £37.1 million was repaid through the Debt Arrangement Scheme, last year down slightly on the £37.6 million paid back in 2017-18.
The situation appears to have worsened dramatically in the first three months of this year. There were 1,223 bankruptcies in this period, up 14.4% over the same period the previous year. The number of protected trust deeds jumped by a massive 40% to 2,049 over the same period.