Surge in Scottish bankruptcies fuels fears of debt epidemic
Surge in Scottish bankruptcies fuels fears of debt epidemic
Tuesday 22nd July 2008
Data from the Accountant in Bankruptcy has revealed that between April and June there were 2,853 cases of bankruptcy.
This represents an increase of 104 per cent from the first three months of 2008.
According to the organisation, which provides debt advice and assists in debt management, the increase can be attributed chiefly to new regulations which have made declaring bankruptcy easier.
Under the new rules, Scots with an income of less than £200 and with assets worth less than £10,000 can voluntarily opt for insolvency for a payment of just £100.
The previous regulations stipulated that debtors can only proceed with an insolvency application if their creditors commenced legal action against them.
News of the surge in bankruptcy north of the border comes amid mounting gloom in the Scottish economy.
A study from the Scottish Chambers of Commerce (SCC) recently said that a slowdown in the economy is now "more evident" than it was three months ago and noted that business confidence has fallen to its lowest level for a decade.
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