Evidently, Scottish people are twice as likely to become insolvent versus the rest of the UK.
Statistics show that one in three of Scottish adults are insolvent and 2 out of 1,000 will file for bankruptcy, while 1 in 1,000 will file bankruptcy from England and Wales.
When compared to the rest of the UK, Scotland's insolvencies have only risen 15% from last year, while England and Wales have a much higher increase. However, there is still means for apprehension since twice as many Scots are entering into voluntary liquidation arrangements.
A large difference Scotland's debtors face is having Protected Trust Deeds (PTDs) versus the remainder of the UK's individual voluntary arrangement (IVA). It is a lot less expensive for people to enter into a PTD with no courts involved and lower fees.
Conveniently for Scots in debt the insolvency laws are expected to become even more relaxed this year which will send a surge in numbers of insolvencies. People with large debts will be able to wipe their slate clean in as little as a year (currently three years) by voluntarily filing bankruptcy.
