The Courier & Advertiser (Perth and Perthshire Edition)
Bankruptcy numbers fall but trend is upwards
The overall number of Scots going bust in the third quarter fell slightly compared to the previous quarter, according to analysis of the latest Accountant in Bankruptcy figures by accountants and business advisers French Duncan LLP.
The latest figures from the Accountant in Bankruptcy reveal that overall personal insolvencies fell from 3,218 in Q2 2018 to 3,067 in Q2 2018.
However, the year-on-year comparison shows that personal insolvencies rose by 23.0% compared with the same quarter in 2017 with a 42.3% increase in Protected Trust Deeds (PTDs).
Eileen Blackburn, head of restructuring and debt advisory at accountants French Duncan LLP, said: “Although the number of personal insolvencies in the third quarter fell slightly the overall trend this year is up, and bankruptcy numbers have been rising for the last three years and this year will almost certainly exceed 11,000.
“This means that over 30 Scots are going bust every day this year which has not happened since 2014. The trend has been upward over the last few quarters with the second quarter of 2018 having the highest number of personal insolvencies since Q4 2013.
“The second quarter also had the largest number of Scots taking out a Protected Trust Deed (PTD) since Q2 2013.
“As these are often seen as the insolvency process undertaken by those with assets and jobs this is a sign that the middle class are continuing to face serious financial problems a decade after the crash of 2008.”
Eileen concluded: “My view is that these figures highlight just how damaging the 2008 financial crash was and how entrenched serious indebtedness is within society.
Given that we have interest rates at record low levels, the lowest unemployment rate in 43 years, and an economy that is, if not booming, ticking along, these figures are concerning.
“That these levels of personal insolvency are occurring at what should be a relatively benign period indicates that there are some deep-rooted financial issues embedded in many peoples’ lives.
“Those who feel that their financial position is out of control should immediately seek help before they become an insolvency statistic.”