Scottish debt: insolvencies falling

Whatever news we`re hearing about the economy, at least one figure seems to be heading in the right direction - the number of Scottish residents who are entering insolvency to tackle their problem debts.

During the first three months of 2011, there were 4,262 personal insolvencies in Scotland. A 7% drop on the previous quarter, it was also an 18% drop on the first quarter of 2010.

Looking further into those statistics, the number of Protected Trust Deeds (PTDs) fell by a full 25%, falling from 2,090 to 1,575 (a drop of 515, in other words). This may or may not be partly due to the introduction of a new route into bankruptcy, the Certificate for Sequestration, which was introduced in late 2010.

As AiB (Accountant in Bankruptcy - Scotland`s Insolvency Service) tells us, 555 people who `would otherwise have been unable to qualify` used this new route to enter bankruptcy and tackle their debts.

But it`s `too early to say` if there`s any link between the two figures.



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