The decline in bankruptcy applications is a welcome sign and it shows personal finance is stabilising across the board.
Edinburgh, Scotland (PRWEB) May 14, 2013
Sequestration.net, a company that helps individuals who need to file for bankruptcy in Scotland, has just announced a 23 percent decrease in people who are applying for Sequestration. This significant drop in applicants comes on the heels of a recent news article on Scotsman.com, which reported that a growing number of Scots with a significant amount of debt are now getting help from official government programmes.
According to the news report, there has been a large decrease in the number of people who are declaring bankruptcy. Official figures indicate that there were over 3,400 personal insolvencies during the past year, which is almost 10 percent down on last year.
Official figures released from the AiB indicate that the Government’s Debt Arrangement Scheme is now one of the preferred way for financially-struggling Scots. Rather than file for bankruptcy, the programme allows people to pay back their debts over a much longer period of time. Specifically, over 4,600 people entered into debt arrangement schemes within the last year—an almost 40 percent increase from the previous 12 months.
New government backed formal arrangements like the DAS scheme give confidence to struggling Scots as they replace the informal Debt Management Plan, typically provided by any company that can obtain a consumer credit license. Many of these companies have profited millions over the years from charging fees for these services which are now free under the new DAS scheme.
According to the Scotsman report, new legislation will be introduced later on this year that will affect and revise bankruptcy laws, while also improving the various debt management services that are available.
A spokesperson for Sequestration.net commented by saying, “The decline in bankruptcy applications is a welcome sign and it shows personal finance is stabilising across the board. The government backed Debt Arrangement Scheme and Trust Deed Scotland debt solutions have made people realise that bankruptcy doesn’t have to be the last resort, there is light at the end of the tunnel. The efforts from the AiB to raise awareness of these solutions are commendable, and hopefully we can see a greater decline in applications in the next quarter.”
In addition, while a Trust Deed requires a high amount of debt to qualify, many more people qualify for sequestration.
Anybody who would like to learn more about Sequestration.net is welcome to visit the user-friendly website at any time; there, they can read about the company and its services.
Sequestration.net provides help and assistance for individuals that need to file for bankruptcy in Scotland. Scottish residents who need a certificate for Sequestration may call the company for free help and advice or visit the website. For more information, please visit http://www.sequestration.net.