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The number of Scots going bust has risen at a time when figures are falling
across the rest of the UK.
Analysis has suggested Scotland is still suffering from the aftershocks of the
recession given the country’s reliance on public-sector employment.
Accountants PKG believe the figures also suggested that the tough economic
climate was now affecting those on higher incomes, given an increase in the
numbers of those seeking to reorganise their debts.
Figures show that 5378 Scots went bust between July and September this year
through either sequestration of assets in the courts, an arrangement knows as
Low Income Low Asset (LILA) or a Protected Deed Arrangement (PDA), which sees
debtors pay back money owed in manageable chunks.
The figures represent 59 more Scots in financial crisis compared to the same
period the year before.
By contrast, England saw a drop of 11% in those going bust.
A detailed breakdown of the personal insolvency situation in Scotland shows that
sequestrations went down 3.2% with a 6.2% drop recorded in LILA applications.
But Protected Trust Deeds rose by 6.5% with the total number of Scots going down
that route the second highest on record.
Iain Fraser, a member of R3, explained: “Today’s figures show that Scots are
still suffering from the after-effects of the recession. With the country’s
greater dependence upon the public sector it is clear that many more Scots are
suffering as cuts result in job losses.
“The Scottish rate of bankruptcy is running at almost twice that of the UK and
the signs are that this situation is getting worse.”
A spokesman for Citizens’ Advice Scotland commented: “Our economy is still being
battered by the recession, and people across Scotland are really struggling to
keep their heads above water.
“CAB advisers see such people every day who are fighting that battle, and in
many cases losing it.”
Source:
Getting Paid
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