Debt Advisory Centre Scotland Welcomes Fall in Scottish Bankruptcies

The Debt Advisory Centre Scotland welcomes figures from the Accountant in Bankruptcy (AiB) showing that Scottish bankruptcies fell in 2011's third quarter by 8% on the same period last year.

Glasgow, United Kingdom, November 29, 2011 --( The Debt Advisory Centre Scotland welcomes the latest figures from the Accountant in Bankruptcy (AiB), which show that the total number of Scottish residents entering bankruptcy fell to 2,852 between July and September, 2011 - marking an 8% drop on the same period in 2010.

The figures for bankruptcy in Scotland also revealed a drop compared with the previous quarter, when 2,947 people were declared bankrupt. There was a notable decrease in the number of people entering bankruptcy through the LILA (Low Income, Low Assets) scheme: an alternative route into bankruptcy for people who are on a low income and whose lenders haven't started legal action against them.

1,223 people took the LILA route into bankruptcy in 2011's third quarter, compared with 1,305 in the previous three months. These figures also mark a 25% fall in LILA bankruptcies compared with the same time in the previous year.

However, it wasn't all encouraging news. There were 5,378 individual insolvencies overall in Scotland in 2011's third quarter - up from 5,319 on the previous quarter, and 5,175 on the previous year. Protected Trust Deeds also saw a 21.7% rise in 2011's third quarter, compared with the same time last year.

An expert at the Debt Advisory Centre Scotland commented:

"It's encouraging to see that the number of people in Scotland entering bankruptcy has fallen - which suggests that fewer people are facing serious debt problems, and those who are struggling may be getting professional help much sooner.

"However, it's still concerning that, overall, insolvencies are on the increase. With the current climate squeezing many people's finances, increasing numbers of people are seeing their disposable incomes fall - which can make keeping on top of debt repayments difficult.

"Having said that, there are some practical steps anyone in this situation could take, to make sure they don't fall behind with their debts and find themselves in financial trouble. Drawing up a monthly budget, and sticking to it, should be one of the first steps you take. Working out exactly how all your money is spent every month can help you to spot any spending patterns, and help you to make cutbacks wherever necessary and 'free up' more money to go towards repaying your debts.

"Consider any areas in your budget that could be improved. Is there anything you could cut back on to maximise your disposable income - such as switching to a cheaper mobile phone contract or starting a car share with work colleagues to reduce fuel costs and long-term wear and tear?

"Of course, some people's finances may be under so much pressure that these steps aren't enough to maintain control of their debts. If this is the case, it's important to take action as soon as possible. Don't be embarrassed about talking to your lenders about your problems, as they can advise you as to what approach could be best. What's more, for Scottish residents, there are some debt solutions - such as the Debt Arrangement Scheme (DAS) - that are exclusively available to you, so speak to a professional debt adviser to find out more."


Notes to Editors

The Debt Advisory Centre Scotland provides debt help and advice to Scottish residents. It's part of the Think Money Group, which is one of the UK's leading financial solutions providers and delivers a comprehensive range of financial services, including debt, insurance and banking solutions.

For more information, visit the Debt Advisory Centre Scotland website at

Melanie Taylor
Debt Advisory Centre Scotland
Tel: 0845 056 6480
Debt Advisory Centre Scotland
Melanie Taylor
0845 056 6480