THE number of bankruptcies in Scotland has jumped again following the introduction of new rules making the process easier, official figures show.

The Accountant in Bankruptcy said there were 4,055 cases between July and September this year, 42 per cent more than in the previous quarter and an increase of 162 per cent on the same time last year.

The figure forms part of the total of 5,998 individual insolvencies in Scotland in the second quarter of this financial year – up 27 per cent on the previous quarter and 70 per cent on the same period in 2007.

The statistics, published by the Scottish Government, also showed that 289 notices of companies going into liquidation or receivership were received over the past three months, an increase of 30 per cent on the previous quarter and a rise of 43 per cent on the same time last year.

Protected Trust Deeds – a voluntary arrangement by which debtors pass their estate to insolvency practitioners – were down 2 per cent on last year at 1,943.

The government said the increase could be due to the introduction on 1 April of a new route into bankruptcy for people who have a low income and low assets.

The Bankruptcy and Diligence etc Act 2007 introduced the Low Income, Low Asset route, allowing people who meet the relevant criteria to apply for bankruptcy without proving apparent insolvency.


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