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Scottish Bankruptcy Rate Doubles

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http://www.perthshireadvertiser.co.uk/pert...73103-21366559/

Bankruptcies have more than doubled since new rules made the process easier in Scotland, official figures revealed.

The Accountant in Bankruptcy said there were 2,853 cases between April and June, 104% more than the previous quarter and 78% higher than the same time last year.

The number makes up part of the total 4,735 individual insolvencies, an increase of 44% on the previous quarter and 35% more than the same period in 2007.

http://www.scotland.gov.uk/News/Releases/2008/07/18113311

There were 4,735 individual insolvencies in Scotland in the first quarter of this financial year. This was an increase of 44.6 per cent on the previous quarter and an increase of 35.4 per cent on the same period a year ago, according to figures published by the Accountant in Bankruptcy today.

This was made up of 2,853 bankruptcies, an increase of 104.5 per cent on the previous quarter and an increase of 78.3 per cent on the corresponding quarter of the previous year, and 1,882 Protected Trust Deeds (PTDs), virtually no change on the previous quarter and a decrease of 0.5 per cent on the corresponding quarter of last year.

The increase in bankruptcies is predominately as a result of the introduction on April 1, 2008 of a new route into bankruptcy for people on low income and low assets, who previously could not make themselves bankrupt. The Bankruptcy and Diligence etc. (Scotland) Act 2007, introduced this new route, whereby people who meet certain criteria can apply for their own bankruptcy without proving apparent insolvency, where a creditor takes court action to recover a debt due. Previously without legal action against them, a debtor could not establish apparent insolvency and was therefore not entitled to apply for their own bankruptcy.

Of the 2,927 debtor applications, the Accountant in Bankruptcy received in the first quarter of 2008/09, there were 1,709 individuals who met the low income, low asset (LILA) criteria and 414 who had proof of apparent insolvency and were awarded bankruptcy during the quarter. There are 725 applications still being processed, with 79 applications being rejected or returned. There were also 730 creditor petitions which awarded bankruptcy during the quarter, a decrease of 3.1 per cent on the previous quarter and a decrease of 15 per cent on the corresponding quarter of last year.

Had the LILA route to bankruptcy not been introduced there would have been a decrease of 25.5 per cent compared to last quarter, in the number of debtors applying for bankruptcy in the first quarter of 2008/09, and a decrease of 36 per cent compared to the corresponding quarter of last year.

So it's far easy for the Scots to escape there debts than the rest of us?

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No, Bankruptcy was made really easy in England and Wales under Enterprise Act in 2003, bankruptcy in Scotland is different, this is just them trying to catch up.

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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