The number of individuals in Scotland declaring bankruptcy has increased more than two-fold in the space of a quarter, new figures have indicated.
According to statistics from Accountant in Bankruptcy (Scotland`s Insolvency Service), 2,853 people filed for insolvency between April and June this year. This figure is 104 per cent higher than that recorded for the first quarter of 2008 and a 78 per cent increase on the same period in 2007.
New rules making the insolvency process easier have been held responsible for the rise.
Under the relaxed laws, those on an income of less than £220 per week with assets worth under £10,000 can volunteer for insolvency for a £100 fee.
Before the rules were revised, those with debt could only make an application for insolvency if a creditor took court action against them, Accountant in Bankruptcy said.
Despite the rise, Gregory Pennington describes bankruptcy as "severe" and puts forward its advantages and disadvantages on it`s website.
