Debt Plans On The Increase As Bankruptcy Rates Fall, Says Debt Advice Site, Scottishtrustdeed.co.uk
Leading Scottish Trust Deed provider Scottishtrustdeed.co.uk reports an significant increase in Debt Arrangement Scheme applications as bankruptcy rates drop 9.9%
EDINBURGH, Scotland, July 26, 2013 /PRNewswire-iReach/ -- The leading Scottish Trust Deed debt scheme website reported a 27% increase in Debt Arrangement Scheme applications through the 2nd quarter of 2013 as debt-burdened Scots opt for the DAS option over filing for Sequestration (Bankruptcy).
Official figures from the Accountant in Bankruptcy (AiB) show personal insolvencies have dropped by 9.9% to 3,472 for the third successive quarter of the 2012-2013 tax year, a decrease of almost 29% compared to the same quarter of the previous year. At the same time debt plans have increased significantly overall compared to the same quarter of the previous year. Take up of the Government's Debt Arrangement Scheme (DAS) has risen by almost 40%, bringing the overall number of people with debt plans to 4,632.
In a recently article published by the AiB, Enterprise minister Fergus Ewing said: "I am pleased to see that personal bankruptcies have dropped for the third successive quarter this year. This is reassuring news in these difficult economic times and shows that the Scottish Government is doing all it can to increase Scotland's economic growth.
"The Debt Arrangement Scheme (DAS) continues to see an increase in approved debt payment programmes, following AiB's efforts to raise awareness of schemes and their benefits."
Of the 3,472 personal insolvencies around 52% were Protected Scottish Trust Deeds (1,672) and 48% (1,820) bankruptcy through sequestration. The latter consisted of 83% applications by debtor directly to the AiB - an increase of 3.8% increase compared to the previous quarter although a 29% drop over the previous year - while Low Income, Low Asset (LILA) awards accounted for 658 awards. Only 284 bankruptcy awards were granted to creditor applications, a figure which has dropped nearly 15% since the last quarter and 39% over the previous year. Trust Deed applications dropped by 41% overall to just 17 bankruptcy awards.
A spokesperson for Scottishtrustdeed.co.uk said: "It's great to see more people seeking official routes of debt management like Protected Trust Deeds, IVA's and DAS payment programmes. Trying to cope with debt repayments on your own is very difficult. Having a structured payment plan in place with a trustee or money adviser to back you makes it more likely you will succeed in paying off all of your debts. Protected Trust Deeds in particular help debtors by writing off some of the debt at the end of the payment term, which is a massive boost to someone who has struggled under debt for years."
However, it's not just personal debtors that are feeling the benefits of the debt reforms of recent years. Corporate insolvencies are also down by 23% since the last quarter and 63% over the same period last year, with just 143 notices of insolvency or receivership from Scottish registered companies.
The Scottish Government has brought in new legislative reforms to help improve the services available to debt-burdened Scots and bring them back on the road to financial recovery.
"The Bill contains provisions to reform the law of bankruptcy and will support AiB in delivering an even better service for debt advice, debt management and debt relief," said Mr Ewing.
"This will help to ensure that the correct support is in place for people across Scotland who are facing financial and other challenges and that debt relief products are fit for purpose."
About Scottish Trust Deed:
Scottish Trust Deed provides help and advice on all aspects of Trust Deeds. With a Trust Deed users can legally write off up to 90% of your debt and be completely debt free in 36 months. There are no setup fees or hidden charges.
Media Contact: Jack Almeida, Scottish Trust Deed, (949) 555-2861, email@example.com
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SOURCE Scottish Trust Deed
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