Scottish bankruptcy rate doubles

Last Modified: 18 Jul 2008
Source: PA News

Bankruptcies have more than doubled since new rules made the process easier in Scotland, official figures revealed.

The Accountant in Bankruptcy said there were 2,853 cases between April and June, 104% more than the previous quarter and 78% higher than the same time last year.

The number makes up part of the total 4,735 individual insolvencies, an increase of 44% on the previous quarter and 35% more than the same period in 2007.

The statistics, released by the Scottish Government, showed there were 223 notices of companies going into liquidation or receivership in the first quarter of the financial year.

The number is a 37% drop on the previous quarter and 9% down from the same time last year.

Protected Trust Deeds - a voluntary agreement when debtors pass the estate to insolvency practitioners - remained virtually unchanged on last year at around 1,882.

The government said the increase in bankruptcies was "predominately" a result of new legislation for people on low income and low assets.

Part of the Bankruptcy and Diligence etc (Scotland) Act 2007 was introduced on April 1 this year, allowing people with minimum income and assets to be declared bankrupt at a cost of £100.

Of the 2,927 debtor applications between April and June, 1,709 met the low income and low asset criteria.

These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.