The Decline Of Scottish Bankruptcies

The number of bankruptcies in Scotland has fallen by 20% over the past year.

Even though the number of bankruptcies in Scotland is in decline, the number of people in Scotland seeking alternatives debt solutions is on the rise with approved Debt Payment Programmes being up 40% to 4,632 in 2012- 2013.


The number of companies going into receivership and liquidation in Scotland is also down in 2012 – 2013 with figures from the Bankruptcy’s Annual Report showing a 25.3% drop. In 2011 -2012 there were a total of 1,369 liquidations recorded which compares with just 1,022 liquidations in Scotland in 2012 -2013.


Despite the current financial climate and personal debt being on the rise the figures do relate with the number of Bankruptcies being at their lowest level in a decade and show that people are seeking out alternative solutions to solve their debt problems.

There is a marked rise in the number of people using a Debt Arrangement Scheme or a Debt Management Program, which provides a less severe solution to debt problems.




One other Scottish debt solution on the rise is a Scottish Trust Deed. With a trust deed, the debtor only has to pay off as much as they can afford over a 3 year period. At the end of the 3 year period, any remaining unsecured debt is then written off. This solution can be much more appealing as it does not tend to place the debtors home at risk and the repercussions of a trust deed are less strict.


With the improvement of alternative solutions to bankruptcy and sequestration it is clear that we are seeing a trend of Scottish people looking for ways to avoid bankruptcy.

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