The number of Scots going bankrupt has fallen by 20% in the last year.
Although the figures dropped from 11,056 in 2011-12 to 8,838 in 2012-13, there was a rise of almost 40% in the number of people using an approved debt payment programme to repay what they owe.
There were 4,632 DPPs approved last year, 39.6% more than in 2011-12.
Debts covered by DPPs amounted to just over £196 million last year, up from just under £144m in 2011-12.
The figures were revealed in the Accountant in Bankruptcy’s report, which also showed a 25.3% drop in the number of firms going into receivership and liquidation.
There were 1,022 liquidations and receiverships in 2012-13, a fall from the previous year’s total of 1,369.
Accountant in Bankruptcy chief executive Rosemary Winter-Scott noted the marked increase in the number of DPPs under the Debt Arrangement Scheme, which showed more people were using DAS “as an alternative to personal insolvency.”
She added that much progress had been made “towards our vision to create an insolvency system that is part of a financial health service through our considerable work on policy and legislative reform.”
