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Scotland: Trust Deeds near record high

Between July and September, the number of people entering a Trust Deed in Scotland reached 2,526 - very nearly a new record.

Only once in the past have we seen a higher quarterly figure - in the second three-month period of 2009, when 2,564 people entered a Trust Deed.

The latest figures from the Accountant in Bankruptcy (Scotland's Insolvency Service) also showed that 2,852 people entered bankruptcy in the third quarter of 2011. In total, there were 5,378 personal insolvencies over the period.

In addition, 856 people entered a Debt Payment Programme under the Debt Arrangement Scheme (DAS), a form of statutory debt management run by the Scottish Government. This figure was 72% higher than it was in the same period last year. In fact, it was the highest figure we've ever seen.

A spokesperson for the IVA Advisory Centre commented: "Like IVAs, Protected Trust Deeds can provide struggling borrowers with the benefits of insolvency without them having to enter bankruptcy.

"Although Scotland still saw 2,852 bankruptcies in the third quarter of 2011, this is still a significant drop - of 30% - on the all-time quarterly high of 4,077 we saw in 2008, shortly after the LILA route into bankruptcy was introduced.

"Of course, bankruptcy genuinely is the best approach in many cases; what's important is that there are different insolvency solutions available, which means people can receive the type of help that's right for them."