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There are growing numbers of people in Scotland facing financial hardship, according to official statistics.

Accountant in Bankruptcy, the Scottish insolvency service, says that in the third quarter of last year, the number of personal insolvencies grew by 18% – a year-on-year rise to 3,198. This is the combined figure of bankruptcies and those who undertook a protected trust deed.

Bankruptcy, or sequestration, is a declaration that someone cannot repay their debts while a trust deed is a form of insolvency that sees the debtor’s estate being transferred to a trustee to benefit creditors.

There has also been a rise in the number of Scots applying for a debt management programme which is approved under the debt arrangement scheme.

In the third quarter, 668 such debt payment programmes were approved.

‘Personal insolvencies have been rising every year in Scotland ‘

The chairman of R3, an insolvency firm, Tim Cooper said: “Personal insolvencies have been rising every year in Scotland since 2015 and 2018 continued the trend.

“10 years after the global financial crisis, many have reached their borrowing capacity limit and are tired of being in debt.”

He added: “While a rise in personal insolvencies is troubling, there’s been a shift in the culture on debt.

“People are willing to talk about personal financial problems now and seek advice and not bottle things up until it escalates.”

Mr Cooper also said: “The sooner someone who is in financial distress looks for help, then more can be done to help resolve the situation.”

Struggling with debt

There’s no doubt that Mr Cooper is right that someone who lives in Scotland and is struggling with debt should speak to someone who may be able to help.

At Scotland’s Trust Deed there’s a team of experienced debt advisers who can offer guidance and help about how to overcome a difficult financial situation.

Among the potential solutions is for a protected Scottish trust deed along with bankruptcy and the debt arrangement scheme.

If you don’t want to speak with a team member, then it’s possible to use the online debt test to see what potential solutions are available in Scotland.

A Scottish trust deed

As for a Scottish trust deed, you’ll need to have unsecured debts of more than £5,000 and then agree to a legally binding contract between you and your lenders to repay an agreed amount every month.

This amount will be repaid over a period of time and the amount of debt that remains when this agreement ends will then be written off.

A Scottish trust deed is popular for this reason but not everyone will be able to qualify and they can instead undertake a debt arrangement scheme, which is run by the Scottish government along with other debt solutions as well.

For more help and advice about bankruptcy or a trust deed, or indeed the debt arrangement scheme, then it’s time to contact the experts at Scotland’s Trust Deed.