More than 50 people are going bankrupt every day in Scotland or being placed in official government debt schemes, official statistics published yesterday show.Personal insolvencies have dropped by more than a tenth, but nearly half of those going bankrupt had little income and few assets, official figures show.There was a total of 3,335 personal insolvencies in Scotland between July and September last year, a decrease of 2.2 per cent compared with the previous quarter, and by 13.7 per cent on the same quarter in 2012, according to figures by official insolvency service Accountant in Bankruptcy (AiB).However, there has been an 8 per cent rise in the proportion of people using the low income, low asset (Lila) route to bankruptcy, which was designed for people who were unable to make a contribution to their bankruptcy, generally people on benefits.The Scottish Government is working to make bankruptcy more accessible and has pledged to cut the costs of going bankrupt from the current GBP200 for Lila to GBP100 with its new minimal asset process (Map). Scotland's enterprise minister Fergus Ewing , said the government was promoting Credit Unions as an "ethical, sensible alternative" to high interest rates lenders. He said: "The overall demand for statutory debt solutions in Scotland continues to decline."The number of bankruptcies awarded in Scotland has been decreasing since 2008-09 and we expect this to continue."However, we must also recognise that - within this overall, decreasing trend - the proportion of people entering bankruptcy with little income and few assets is rising." Mr Ewing said Scotland's bankruptcy laws must "do more to provide a safety net" for vulnerable, low-income debtors and their families.He said: "That is why we are introducing a new minimal asset process, which will provide quicker, cheaper and more effective debt relief to those who need it most."While it is encouraging to see that personal insolvencies have gone down, it is important that we continue to work towards helping people stay out of debt and we will invest in supporting an educational programme to provide financial education to those most at risk."We are working towards a financial health service for Scotland , by introducing new legislation to provide a modern system of debt advice, debt relief and debt management."He added: "We will also continue to raise awareness across Scotland of the negative impact of high interest borrowing and promote Credit Unions as an ethical, sensible alternative."
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Quiznos Files for Chapter 11
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Vybz Kartel Convicted of Murder
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Koch Brothers Step up Anti-Obamacare Campaign
- U.S. Consumer Sentiment Falls in Early March
- U.S. to Relinquish Gov't Control Over Internet