Scotland business

Fall recorded in number of Scots going bust

Image caption Personal insolvencies fell in the period leading up to Christmas while company failures rose

The number of Scots declared bankrupt in the final three months of last year fell, while company failures rose.

A total of 3,335 people were declared insolvent during the period - a fall of nearly 14% on the previous year.

The number of companies failing rose by more than 23% - with a steep rise in compulsory liquidations.

The figures from the Accountant in Bankruptcy also showed a sharp increase in the number of companies choosing voluntary liquidation.

Commenting on the personal insolvency figures, Enterprise Minister Fergus Ewing said: "The overall demand for statutory debt solutions in Scotland continues to decline.

"The number of bankruptcies awarded in Scotland has been decreasing since 2008-09 and we expect this to continue.

"However, we must also recognise that - within this overall, decreasing trend - the proportion of people entering bankruptcy with little income and few assets is rising."

He added: "Scotland's bankruptcy legislation has to do more to provide a safety net for vulnerable, low-income debtors and their families."

He said the Scottish government was introducing new legislation to make "cheaper and more effective debt relief to those who need it most."

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