As a Debt Recovery practice located in Carlisle, David Allen Recovery Solutions work closely with bankruptcy on both sides of the border.
A recent survey by Scotland Debt Solutions has revealed some unexpected hotspots for sequestrations (personal bankruptcy) and trust deeds. Smaller rural towns tend to have a higher number than the larger cities.
The report names the town Kilbirnie in North Ayrshire with the highest level of personal bankruptcy, with 71 new cases per 10,000 adult population. This is nearly 3 times higher than the Scottish average of 25 per 10,000 adults.
Five worst Scottish towns for personal bankruptcy:
Five best Scottish towns for personal bankruptcy:
(source Scotland Debt Solutions)
Overall, the number of personal bankruptcy cases has been falling over the last five consecutive quarters.
The research shows that the highest levels are not only in the deprived inner city areas but also in smaller and rural areas, where there is less access to support and advice and limited employment opportunities.
People who are in financial trouble need to take early action to help get them back in control and there is lots of online debt advice available.
In total there were 13,315 new cases of bankruptcy in Scotland over the past 12 months, this has come down 5% from 13,991 in the year to 31 December.
Falling levels is a good thing however we do need to be mindful of factors masking underlying trends. The availability of payday loans has meant that some people are able to stay away from bankruptcy, temporarily.
The true picture of rising debt appears to be hidden.
For more information about our Debt Recovery services please contact us 01228 713070 or to find out more about the team click here.