Bankruptcy in Scotland falls in Q1 2010

The number of people declaring bankruptcy in Scotland declined in the first quarter of 2010, compared with the same point the year before, according to official statistics.

Accountant in Bankruptcy (AIB) reported 5,378 personal insolvencies in the country, a decrease of 15 per cent over the 12 months leading up to March.

Fergus Ewing, minister for community safety, commented: "The Scottish government remains committed to helping those struggling to deal with debt," confirming that the Home Owner and Debtor Protection (Scotland) Act 2010 is due to come into effect later this year.

This policy will offer support to those facing the repossession of their home and allow a greater number of people the option of declaring bankruptcy.

For the purposes of the AIB data, trust deeds were included in the personal insolvency data.

Statistics pertaining solely to bankruptcy showed a 16 per cent decrease on the year and now change compared with the previous quarter at 3,139 cases.

This comes after Ian Boden-Smyth, a spokesperson for the UK Insolvency Helpline, argued that individuals who have declared bankruptcy should still be allowed access to their bank accounts.

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