Creditors have seen more than £100m repaid to them since the launch of a Scottish government scheme to help those in debt.
Scotland’s business minister Fergus Ewing has used the figure to echo calls from the Financial Inclusion Commission to roll out the statutory Debt Arrangement Scheme (DAS) across the UK.
According to figures from Accountant in Bankruptcy, just over £112m has been repaid since July 2011, with £9.6m coming between July and September this year.
DAS freezes interest and charges to give debtors what Mr Ewing described as ‘much-needed breathing space’.
More than 2,100 people have completed debt payment programmes set up by the scheme, thereby avoiding bankruptcy. Between this figure and the cash repaid, the Scottish government said the scheme had reached an ‘important milestone’.
Andrew Skinner, Palmer’s head of debt, possession and insolvency, said: “Anything that makes a simultaneous breakthrough in debt management and debt relief is to be welcomed, but unfortunately it remains the case that despite those to have benefited north of the border, there are circumstances in which legal proceedings are the most realistic course to resolution, particularly where commerce is concerned.
“At Palmers, we know that the collection and enforcement of debts is fraught with pitfalls and expert advice should always be sought. We offer services that meet a wide range of circumstances. For more on what we do, please contact us.”