Personal insolvencies in Scotland rose by 11.8% overall in April-June 2018 compared with the same period a year earlier, new figures from the Accountant in Bankruptcy (AiB) show.
Although bankruptcy awards are down 6.5%, with 1,236 awarded for the first quarter of 2018-19 compared with 1,322 in Q1 of 2017-18, there was a marked increase in protected trust deeds (PTDs), up from 1,547 to 1,972.
The published report also confirms that over the full year 2017-18, personal insolvencies increased by 5.7% in 2017-18 when compared with the previous year, from 10,032 to 10,602 This increase was mainly due to PTDs, up 8.9% compared with a 1.8% rise in awards of bankruptcies.
The Debt Arrangement Scheme (DAS), which allows people to repay their debts without facing insolvency or further action being taken against them, also showed a rise of 8.5% in the quarter, with 648 debt payment programmes approved compared with 597 in Q1 of 2017-18.
AiB chief executive Richard Dennis commented: "While the number of individuals entering insolvency continues to be very much lower than 10 years ago, these figures clearly illustrate personal insolvencies remain on an upward trend from the first quarter of 2015-16.
"With consumer borrowing now surpassing the levels seen before the 2008 crash, we are leading an ambitious programme of reform to make sure the debt solutions offered by the Scottish Government remain relevant in today’s society.
"In particular, changes expected to come into force this October will make the Debt Arrangement Scheme a much more accessible and flexible option for some people who otherwise may see no alternative other than insolvency."
The number of Scottish corporate insolvencies was also up year on year, from 200 to 245, though a drop on the previous quarter's figure of 259. There were three receiverships, 145 compulsory liquidations and 97 creditors’ voluntary liquidations.