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CAS responds to latest insolvency figures

Citizens Advice Scotland have responded to today’s insolvency figures, urging those who are struggling financially to get advice before making any major decisions about their finances.
Accountant in Bankruptcy (AiB) today report there were 5,601 personal insolvencies in Scotland in the first quarter of 2012/13. This is a 14.9 per cent increase on the previous quarter and a 5.3 per cent increase on the same period in the previous year. 

CAS Chief Executive Margaret Lynch said:

“CAB advisers are now very used to dealing with people in this position, so we see the real distress they go through. Nobody wants to become bankrupt. It is not a soft option, and never an easy decision for anyone. Unfortunately, for many people at the moment, their finances are in such a bad way that it is their only realistic option.
“We are pleased that the Debt Arrangment Scheme seems to be successfully helping many of those affected. But it’s important to note that every case is unique and so the solutions for each individual will be different.

“What is vital is that people who are struggling get advice before they take any major decisions about bankruptcy. After all, there may be other courses of action available, and even if you do opt for insolvency you need expert help to guide you through the process. CAB advice is free, impartial and confidential. And our advisers are very experienced in dealing with cases of people who are in real financial trouble.

“So we will continue to do all we can to help those who are affected. But figures like these underline the need for continued funding for quality advice services like the CAB. Last year Scottish CAB advisers dealt with 400 debt cases every day of the year. In many of those cases we were able to steer people away from insolvency, so without our help these figures could be even worse.”

For more information please contact Tony Hutson on 0131 550 1010 or 07774 751655.