Personal debt in Scotland rockets

Personal insolvencies in Scotland have risen by a dramatic 137%, according to personal debt advisers Invocas Group. This is in stark contrast to figures published on Protected Trust Deeds which suggest a modest 1.6% increase quarter on quarter.

Protected Trust Deeds are similar to Individual Voluntary Arrangements, but are only available in Scotland.

Invocas predicts the actual increase of personal insolvencies is a rise from 6,158 in quarter one 2008, to 14,600 in Q1 2009.

Stephen Lightley, CEO of Invocas said: 'The world changed so quickly last year that people whose finances were already stretched rapidly found themselves in an untenable position, perhaps made worse by unexpected redundancy and or reduction in the household income.'

'There are a number of potential alternatives before bankruptcy which can make life much easier and stop debt becoming such a problem' he added.

A PTD is also known as a Scottish Trust Deed, which entails a debtor repaying money owed over a specified period of time with any remaining debt after that period being written off.

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