The number of Scots falling into bankruptcy has risen by five per cent, new industry figures have revealed.

Provisional figures from the Accountant in Bankruptcy (AiB) for the financial year 2018-19 highlighted the increase, showing there were 4,862 awards of bankruptcy compared to 4,644 during the year 2017-18.

However, statistics from the insolvency service also revealed that protected trust deed (PTD) numbers have continued to rise across Scotland, including bankruptcies and PTDs, by 20.5 per cent. The last year saw 7,917 PTD cases compared to 5,958 in 2017-18.

Debt Arrangement Schemes (DAS) also saw an increase in numbers, with an increase of 9.5 per cent approved DAS repayment programmes with 2,544 awarded in 2918-19 compared to 2,318 last year. Meanwhile the number of DAS schemes completed in 2018-19 was similar to that of the year before at 1,687. Figures show that a total of £37.1 million was repaid through the scheme last year down slightly on the £37.6 million paid back in 2017-18.

Year-on-year stats also show that corporate insolvencies rose from 884 to 966.

Speaking of the rise in insolvencies, Finbora Group chairman Pearse Flynn said: “The rise in insolvencies across Scotland highlight the economic pressures faced in these uncertain economic times.

“Never has it been more important to offer a diverse range of debt relief solutions to support those struggling across the country.

“Carrington Dean has long been heralded as Scotland’s debt specialist and that’s a reputation we’re proud to uphold. Making it from one pay day to the next is easier said than done for most people and that’s something it’s important we understand.

“There’s no one size fits all profile when it comes to those living with debt so it’s important that the debt relief solutions available are open to people from all walks of life. There are more options available that bankruptcy and that’s something we need to make more people aware of.

“Everyone should have access to affordable debt help – that’s something that we always have and always will champion.”

Commenting on the latest figures, Minister for Business, Fair Work and Skills Jamie Hepburn said: “These figures highlight the challenging economic times we are facing with more Scots experiencing increased financial pressures.

“The ongoing uncertainty around EU exit, alongside the challenges of the roll out of Universal Credit, bear much of the blame.

“In this climate it is more important than ever that people encountering financial difficulty seek early advice and the appropriate solution. It is welcome to see an increase in the number of Scots accessing the Scottish Debt Arrangement Scheme which helps them to pay back their debts. Recent reforms to the scheme will also allow more individuals in Scotland to benefit from this initiative going forward.

“The Scottish Government urges those in financial distress to obtain money advice at the earliest possibility in order to take control of their finances and ensure the right debt solution is found to suit their circumstances.”