Personal bankruptcy in large increase
It is reported that personal insolvency has increased massively over the last five years.
The latest figures from the government show that 27,029 people have become insolvent between April and June. This is a large increase, 5.1% when compared to the same period in 2013.
Insolvency figures in Scotland has actually fallen to it lowest figure since 2005.
The figure is said to be increased due to the large number of IVA`s (individual voluntary arrangements). IVA`s were created in 1987 to help people avoid being declared bankrupt. The number of people taking out IVA`s rose to 14,571 in the last quarter.
The actual number of people declaring themselves bankrupt (insolvent) has increased for the first time since 2010, 0.2% of the adult population has declared themselves bankrupt.
The number of bankruptcies hit an all-time high in 2009 with over 35,000 and has been on a gradual decline since 2009.
This is stark contrast to business insolvency which has been on a continual downwards path. Companies going into administration have fallen by over 35%, which is the lowest figure for over 9 years.
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