Scottish insolvencies decreased by 24.5% in 12 months
Wilson Andrews has commented on the AiB (Accountant in Bankruptcy) Scottish insolvency statistics.
Summarising the figures, a spokesperson from Wilson Andrews said: "Personal insolvencies decreased significantly on both an annual and a quarterly basis, and more people successfully applied for the Debt Arrangement Scheme (DAS), a statutory debt management service run by the Scottish government."
The AiB's insolvency figures showed that in July-September this year, there were 4,063 individual insolvencies in Scotland. This was a significant decrease (24.5%) from the same time period in 2011. On top of this, it was an even bigger decrease (27.5%) from April-June 2012 - the previous quarter.
There have been fewer people applying for bankruptcy, which can partly be attributed to AiB's rise in bankruptcy fees: there were 44% fewer bankruptcies in the third quarter of 2012 than in the second.
The number of people starting a Protected Trust Deed has also decreased by 12.7% from the same period last year.
The number of people turning to the Debt Arrangement Scheme (DAS) has increased, however - applications were up almost 30% from the same time in 2011. DAS provides legally binding debt help without having to resort to insolvency. It seems more and more people are becoming aware of DAS - and how it can help them tackle their debt problems.
The spokesperson from Wilson Andrews said: "A decrease in the overall number of personal insolvencies could suggest that the shape of the nation's finances is improving. The fact that more people are applying for DAS and fewer for insolvency could also suggest that debtors are applying for debt help earlier - i.e. before it gets to the stage where they could never repay their debts in full."