Figures released by the Accountant in Bankruptcy, Scotland’s Insolvency Service, at the end of October for Q2 2012-13 have a shown a decrease in personal insolvencies of 24.5% compared to the same period last year and this is coupled with a decrease 27.5% from the previous quarter.
According to the AiB, the decrease is due to the reduced number of bankruptcies by debtor application in the second quarter. There were a particularly high number of debtor application awards in the previous quarter in advance of the increase in fees charged for this form of bankruptcy. However, we have still witnessed a decrease of debtor applications by more than a third when compared to the same period last year.
Minister for Energy, Enterprise and Tourism, Fegus Ewing said that the decrease was expected due to the necessary fee increase for bankruptcy applications and that the Scottish Government and its agencies were committed to breaking the cycle of debt and highlighted the work the AiB is doing on bankruptcy reform.
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