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Scottish bankruptcies still falling

The number of people declared insolvent in Scotland has fallen again, to the second-lowest level we've seen in four years.

In the final three months (the fourth quarter) of 2011, just 2,615 Scottish residents were declared bankrupt - fewer than in any of the other three quarters of last year. In fact, this was the second-lowest quarterly total since early 2008.

The statistics from the Accountant in Bankruptcy (AiB - Scotland's Insolvency Service) also show us how many people entered a Protected Trust Deed (usually seen as the Scottish equivalent to an IVA (Individual Voluntary Arrangement)) or started a Debt Payment Programme (DPP) under the Debt Arrangement Scheme (DAS).

Protected Trust Deeds: 2,049 people entered a Protected Trust Deed in the final quarter of last year. That's a 19% drop on the previous quarter, and a 2% drop on the same time period in 2010.

DPPs under DAS: 878 people entered a DPP under DAS. That's a 3% increase on the figure from the previous quarter - and an increase of a massive 100% on the figure from the same time in 2010.

"Personal insolvencies have gone down significantly this quarter as both bankruptcies and Protected Trust Deeds have decreased, the latter by nearly one fifth," said Fergus Ewing, Minister for Energy, Enterprise and Tourism. "It is encouraging to see that bankruptcies have fallen for the second successive quarter."

He also pointed out the growing number of people taking advantage of DAS, which "allows people to repay their debt over an extended period of time and both debtors and creditors benefit from this less severe alternative to bankruptcy".