IVAs have become the subject of intensive trading on the capital markets. As the Financial Times has reported, major capital management group Pamplona recently managed to collect a whopping £100m for a vehicle containing loans connected to Individual Voluntary Arrangements from UK banks. Regardless of the underlying motivations for the move, the transaction demonstrates just how important IVAs have become as an alternative to bankruptcy, with thousands being taken out each year. It also demonstrates how closely the measure is being watched in other parts of the world: An estimated 95% of the investors involved in the above mentioned deal are living in the USA, according to the newspaper.

As Craig Gedey of the Debt Advisory Line stated, the fact that banks were shedding some of their IVA-related loans was a positive sign, really: “Banks obviously have very good reasons for wanting to sell off some of their IVA-related loans, as these burden them with high capital requirements. Getting rid of them means freeing money for potentially more lucrative investments. But what this essentially means is that these loans are highly secure rather than speculative. After all, contrary to the initial agreement, an Individual Voluntary Agreement takes the debtor's real financial possibilities into account, significantly reducing the risk of defaulting on the new credit.“

Over the past few years, Individual Voluntary Agreements have firmly established themselves as a respected option to avoid the far more severe and far-reaching bankruptcy procedure. By applying for an IVA, a lender is declaring both his willingness and ability to pay back a significant chunk of his debts, rather than defaulting on them completely. This is reflected by the fact that the average value of an IVA loan is around £40,000, thereby taking not just the needs of the borrower, but also the interests of the lender into account. As a result, more and more are being taken out each year – 12,000 overall in 2010, according to the Insolvency Service.

So what does this news actually mean for UK citizens? As Gedey pointed out, not all that much: “Really, the idea behind the IVA-deal by Pamplona is risk management, with banks trading in less risky assets to allow for potentially more rewarding activities. If IVAs are considered as secure investment options by major financial institutions, then this only proves their validity as tool to stave off insolvency. It also goes to show that sound bankruptcy advice prior to applying for an individual insolvency may make a whole lot of a difference – in many cases, sensible debt re-structuring measures can even make an IVA unnecessary.“

The Chartered Institute of Personal Development's latest forecast predicts that unemployment levels in the UK will peak at 2.8 million in 2010. They believe the number of individuals who are out of work will continue to rise for at least the first 6 months of 2010 despite the encouraging signs of recovery many economists claim to have witnessed in the 4th quarter of 2009.

The figure of 2.8m is well below the CIPD's previous prediction earlier this year when they felt that as many as 3.2 million individuals could be unemployed as a result of the deepest recession in living memory. By December 2009 the number of unemployed individuals in the UK stood at 2.49m (7.9% of the total workforce) and is still rising as factory closures and company collapses continue to dominate the financial pages. For those who remain employed there is the very real prospect of below-inflation pay rises and a reduction in benefits, training and subsistence allowances as organisations try and keep salary costs to a minimum.

Dr John Philpott, chief economic adviser to the CIPD, said it was a "remarkable" that unemployment had not taken off further, given the scale of the downturn. He went on to say that he felt that "the labour market is a lot more flexible than it was in the past…..as employees take wage freezes or pay cuts or shorter hours in order to stave off redundancies".

All this could of course change if the economic recovery stalls or a change in Government at the next election impacts public spending immediately. To that end Debt Advisory Line continues to expand its operations and has recently opened a new office in Stockport and continues to recruit new advisors and staff.

Debt Advisory Line who were recently named as the Debt Management Provider of the Year for the second year running receive hundreds of calls and enquiries every week from individuals who are struggling with debt and increased stress levels after finding themselves unable to manage their debt burden based on their available income. Many make contact after a redundancy, factory closure or other event brought about by the global economic crises. These new victims are often unable to pay utility bills, credit card balances, overdrafts and unsecured loans.

Debt Advisory Line encourage anyone experiencing debt problems to take a look at their web site at www.debtadvisoryline.co.uk to learn more about debt management and the various options available to reduce and eliminate debts. Alternatively, they can call for free advice on 0800 157 7254.

Don't let unsecured personal debts spiral out of control - award winning help and solutions are just a phone call or a mouse click away!

An article published in Metro on Wednesday 23rd December confirms the news from the previous day that "Banks were given the green light to continue with "rip-off" overdraft charges after the trading watchdog ruled out continuing its legal fight. The Office of fair Trading said it would not challenge the ruling made by the Supreme Court, allowing banks to carry on stinging personal account holders for going overdrawn without approval. However, the OFT raised 'significant concerns' about personal accounts were operated and the lack of competition in the market".

Debt Advisory Line have spoken to thousands of individuals over the last two years who have fallen into debt as a direct result of hefty bank charges that have been levied against them for an unauthorised overdraft however small or large. For many these fees create a downward spiral into a virtually inescapable debt cycle that causes huge stress to the individual as well as potentially their family and friends. While it is very unlikely now that anyone looking for a refund on previously charged fees it is hoped that the OFT's concern may lead to the UK banks being far more transparent about the fees they will charge for those straying in to the red on their personal accounts without prior agreement. John Fingleton the Chief Executive of the OFT is believed to have threatened to ask the Government to change the law if the banks did not co-operate, a stance supported by the Treasury. In response a treasury Spokesperson stated that they are "working towards a voluntary agreement with the banks, but we don't rule out further action if this doesn't deliver the kind of changes we expect to see. Through the Financial Services Bill we are legislating to give consumers greater powers and protection for the future, including the ability to take a group action through the courts wherever there is mis-selling or abuse on the parts of banks".

Debt Advisory Line encourages anyone experiencing overdraft, credit card, utility bill or unsecured loan related debt problems to take a look at our web site to learn more about debt management and the various solutions available. Alternatively, they can call for free advice on 0800 157 7254.

Don't let unsecured personal debts spiral out of control - award winning help and debt management solutions  are just a phone call or a mouse click away!

The UK Payments Council have announced that cheques will be phased out by October 31st 2018 as long as a suitable alternative can be found. The Council believe that there should be "no scenario" for needing to write a cheque by that date and therefore the system that processes cheque payments is slated for closure on that date. According to their Board, cheques have been in 'terminal decline' for some time but the situation will continue to be monitored and no final decision will be taken until the last planned review in 2016.

In a statement the Payments Council promised that their goal "is to ensure that by 2018 there is no scenario where customers, individuals or businesses, still need to use a cheque. The board will be especially concerned that the needs of elderly and vulnerable people are met." For many however, the demise of the cheque could be a recipe for further disaster as it encourages more people to apply for and use store and credit cards which often leads to individuals getting into debt problems as their spending is based on assumed future income rather than the historical norm of what money is available in the current checking account.

Debt Advisory Line who were recently named as the Debt Management Provider of the Year for the second year running receive hundreds of calls and enquiries every week from individuals who are struggling with debt and increased stress levels after finding themselves unable to manage their debt burden based on their available income. Redundancies, factory closures and a global economic crises are continuing to draw in new victims who are unable to pay utility bills, credit card balances, overdraft and unsecured loans. The death of the cheque and further moves to a credit based economy may only exacerbate this problem further.

Debt Advisory Line encourage anyone experiencing debt problems to take a look at their web site at www.debtadvisoryline.co.uk to learn more about debt management and the various options available to reduce and eliminate debts. Alternatively, they can call for free advice on 0800 157 7254.

Don't let unsecured personal debts spiral out of control - award winning help and solutions are just a phone call or a mouse click away!

A recent study titled 'Turning the Tide' issued jointly by three UK charities (Advice UK, Citizens Advice & Shelter) claims that lenders in the UK are still guilty of failing to exhaust all possible options available to keep people in their homes. It would appear this happens in at least one third of all cases they researched. Despite the fact that UK mortgage providers are expected to use repossession only as a last resort it would appear that judges in many cases don't step in and ensure this protocol is followed.

The only positive news is that with interest rates being at such a low level the actual number of repossessions and the number of families at danger from them has been revised down from 75,000 to 48,000. This obviously leaves many families struggling to cope and under incredible stress. Those who have borrowed from sub-prime lenders may also find they are more likely to face court action earlier than friends or neighbours in a similar position who have borrowed from a mainstream lender.

With redundancies and factory closures still common the reasons as to why many fall in to mortgage arrears are still grabbing the news headlines on a weekly basis and it is those individuals and families with low incomes that are most at risk of losing their homes according to the report. The Government's Support for Mortgage Interest (SMI) Scheme is aimed at helping those who have lost their jobs and kicks in 13 weeks after their claim as long as the mortgage is under £200,000.

David Harker, chief executive of Citizens Advice said that the "Government, lenders and regulators have taken swift and welcome action to protect people affected by the recession from losing their homes unnecessarily. Our advisers see evidence of these initiatives working in many cases, but our research makes it clear that the safeguards already in place to protect people from avoidable homelessness need to be strengthened if they are to succeed in stemming the rising tide of repossessions."

Debt Advisory Line continue to receive hundreds of calls every week from individuals who are struggling with debt despite claims by the FSA that mortgage arrears are decreasing with a fall of 10% in the period of July to September compared to the previous financial quarter. Those seeking advice and solutions will be under stress and need advice and access to debt management and elimination solutions from trained advisors who are best placed to advise an individual on the best option for them depending on their personal circumstances.

Debt Advisory Line encourage anyone experiencing debt problems to take a look at their web site at www.debtadvisoryline.co.uk to learn more about debt management and the various options available to reduce and eliminate debts. Alternatively, they can call for free advice on 0800 157 7254.

Don't let unsecured personal debts spiral out of control - award winning help and solutions are just a phone call or a mouse click away!

Newspapers, magazines, tv shows & radio programmes are constantly reminding us that having money management skills is vital if we are to maintain healthy bank balances. The question is, just how many of us are able to develop and improve those money management skills? At at time when they are needed more than ever we may well be falling short in our quest to master them and as a result leaving ourselves short at month-end.

So what can we do to avoid these problems? We can start saving. This is perhaps the most important tool to avoid debt in future and ensure we never have to consider debt management or seek advice ever again. With savings we can take care of unexpected costs as and when they arise rather than entering into debt. If you can accrue three or months salary in savings that is perfect but any amount of savings is better than nothing.

We can also start to budget more efficiently by setting aside money for essentials (mortgage, rent, utility bills, council tax, basic groceries etc) before we start to think about spending money on non-essential items such as nights out, DVDs, holidays, etc. The best way to create a budget is to put time aside and go through your last few bank statements making notes about all your regular bills as well as variable costs such as Petrol, food and phone bills. Only by spending time on this exercise will you be able to determine your spare income for the 'luxuries' each month.

The third trick to better money management is to shop around at all times. Use comparison web sites to source better insurance deals, better mortgages and better value from your energy supplier(s). Do the same with your grocery shopping and very quickly the pennies saved will add up into pounds saved.

Finally, if you are still struggling to get to grips with managing your money you could always take a look at the Me2Money web site which can be found at www.me2money.com. You can apply quickly and easily for a card that helps you manage your money. It allows you to take control of their household bills & finances and has no hidden charges. It is simply a current account and prepaid debit card that will ensure you don't run up debts in the future and for those who are considering or using a debt management solution it is a great way of ensuring you eliminate debt quickly and maintain a debt free life in the future.

The Bank of England has today held interest rates at a record low of 0.5% in a move that was widely expected. It also announced that it is to continue with its policy of Quantitative Easing, where it pumps new money into the UK's economy. That has totalled a massive £200bn to date and the the interest rate remains unchanged since March of this year.

Despite this news many financial experts are warning that any sustained or significant economic recovery is still a long way in to the future and many are predicting that interest rates could remain at this low level until late 2010 or even until early 2011. This should not come as a shock to many who follow the ups and downs of the financial world as the Bank had previously warned that any recovery would be "slow and protracted" and that its policies and decisions would take months to have an effect on the economic fortunes of the country.

Whatever the Banks decision had been the fact remains that thousands of individuals across the UK are now struggling with debt. The banks and financial institutions are still not lending money at a rate the Government had hoped and economic confidence is non-existent to most observers. In the past month thousands of people have lost their jobs including 1,700 workers at the Corus steel plant in Teeside and the surge in job losses normally seen in the retail sector after the Christmas period is obviously still some weeks ahead.

For many people in the UK, debt is a major problem and credit unions and organisations such as Debt Advisory Line are continuing to see an increase in the number of enquiries they receive on a daily basis from people who are now struggling with unsecured debts or who are extremely worried about the possibility of defaulting on loan, credit card and utility bill payments. They need solutions that are appropriate to their needs and expert free advice that will offer them a solution that best meets their requirements. Why not take a look at Debt Advisory Line's web site at www.debtadvisoryline.co.uk and find out more about the advice and debt management solutions they offer. Alternatively, call for free advice on 0800 157 7254.

Don't let unsecured personal debts spiral out of control - award winning help and solutions are just a phone call or a mouse click away!

Debt Advisory Line, one of the UK’s leading providers of consumer debt advice, has taken a further step towards becoming a wholesale financial solution with the announcement of a new current account and prepaid debit card.

The move comes as the award winning company forms a strategic partnership with Secure Trust Bank to deliver a current account that is available to everyone, has no credit checks and guarantees no hidden bank charges.

Commenting on the development of the new bank account from Secure Trust Bank, Mike Ransom, Head of Business Development, Debt Advisory Line, said: “The provision of this account by Debt Advisory Line further underlines our continued focus on our customer’s requirements.

“We have arranged this venture in conjunction with Secure Trust Bank, after listening to the growing needs of our customer base. They have told us they want a card that helps them manage their money, allows them to take control of their household bills and finances and has no hidden charges. This is exactly what we have given them with the current account and prepaid debit card.”

Debt Advisory Line already helps thousands of consumers every month to tackle their debt problems and rebuild their credit profile in the shortest possible time, with advisers helping individuals across the UK tackle mortgage arrears, Individual Voluntary Agreements (IVAs), Trust Deeds, secured loans and bankruptcy.  See www.me2money.co.uk for further information.

According to a report released by the Joseph Rowntree Foundation on 3rd December 2009, poverty levels along with unemployment and home repossessions started rising in 2004 well before the current recession began. In fact, these problems were already at an acute level before the economic downturn. Long-term solutions are now required to rapidly ease these poverty levels and reverse the trend in the medium to long-term.

The report produced by the New Policy Institute does contain positive news on the reduction of infant mortality rates, the fear of crime, better basic school results for 11 to 16 year-olds and fewer school exclusions.  It clearly points out that the re-emergence of serious poverty in the UK cannot be solved by reactive short-term solutions as we now have two million children living in low-income working households (a record figure since records began) while the tax credits system that is currently in place tackles the symptoms but does not strike at the root causes of poverty.

Debt Advisory Line, who were recently awarded the title of Debt Management Provider of the Year in 2008 & 2009 are acutely aware of the rise in poverty across the UK. Over the last few years they have seen an increase in the number of individuals seeking advice for the serious personal debt problems. Craig Gedey the Marketing Manager at Debt Advisory Line commented that " many people today are finding themselves in debt through no fault of their own. The cost of living has increased with rising energy bills and hundreds of jobs are being lost every week up and down the UK as the organisations struggle to survive in the deepest recession in living memory".

Whatever an individual's particular circumstances the trained advisors at Debt Advisory Line are able to offer a solution to each persons specific debt problem whether that be a debt management plan, an IVA, a Trust Deed or even bankruptcy. The best way out of poverty is to eliminate debts as quickly as possible and to move on making your financial wellbeing a priority. Anyone experiencing utility bill, credit card, overdraft, or unsecured loan related debt problems should take a look at Debt Advisory Line's web site at www.DebtAdvisoryLine.co.uk. Alternatively, they can call for free advice on 0800 157 7254.

Don't let unsecured personal debts spiral out of control - award winning help and solutions are just a phone call or a mouse click away!

Today's judgement handed down from the UK's Supreme Court is a huge blow for thousands of UK bank customers who were hoping to see their overdraft and bank charges refunded. The Office of Fair Trading (OFT) will no longer be able to continue its investigation into the fairness of charges levied by UK banks on customers who have unauthorised overdrafts. In effect, unless the OFT can now find another way around the ruling, the banks can continue charging substantial fees for customers who go overdrawn without authority using the money raised to subsidise the cost of providing current accounts to their customers who stay in credit.

For thousands who are struggling with the harsh economic climate at present, this judgement will come as a further blow. It will almost certainly leave many of those already saddled with huge debts in an even more precarious position. UK Banks will be allowed to "coin-in" an estimated £2.6bn annually from these charges while almost one million bank customers will be left without hope or redress if their claim is one of those that was "suspended" in July 2007 to allow a test case to be brought before the courts.

Mike Ransom, Head of Business Development at Debt Advisory line said that "this is a disappointing result for thousands of customers who we felt would get positive news today, however they are still in limbo. We are digesting the news and waiting for the OFT announcement in early December as well as feedback from our legal team. We will ensure our customers are fully updated on any developments and will be doing all we can to help them."

However, for many people around the country their options are now extremely limited. With Christmas and the festive season fast approaching and their debt(s) mounting it may well be that the best option for them is to turn to an agency or organisation that offers debt advice and solutions.

Debt Advisory Line who were voted Debt Management Provider of the Year in both 2008 & 2009 are ready to advise those who are left stunned and saddened by the judgement handed down that pushes their own unsecured personal debt to levels that they can no longer manage effectively on a day to day basis. Take a look at their web site at www.debtadvisoryline.co.uk or alternatively call for free advice on 0800 157 7254.

Most importantly, people should remember not to let their debts spiral out of control - award winning help and solutions are just a phone call or a mouse click away!

According to a report in the Guardian newspaper on Friday 13th November 2009 the UK Government is set to announce proposals that would allow individuals to declare themselves bankrupt online. This would avoid any court involvement which in certain parts of the country are seeing a three month delay in the granting of bankruptcy orders.

Ten tips from the top for a crisis free Christmas

A leading debt management company is urging financial restraint in the build up to the festive season, to avoid suffering from the worst kind of New Year hangover – a severe financial headache!

Debt Advisory Line, which has been awarded the title of Debt Management Plan Provider of the Year, reports huge increases in those turning to the company for debt advice from November through to January.  In January of this year, for instance, Debt Advisory Line saw a massive 40% increase in new customers compared to the pre xmas period and 2010 looks set to worsen for consumers nationwide.

Mike Ransom of Debt Advisory Line said: “The festive season is obviously a key emotive period for many where buying expensive gifts, entertaining and even hosting the Christmas dinner can leave a trail of destruction and people can end up with the headache of picking up the financial pieces when it’s all over in January. We have put together some simple steps to help people take stock of the situation before the season begins so they can avoid plunging into avoidable debt problems and enjoy the holiday period without the financial hangover. It is worth bearing in mind that a considerable amount of Christmas debt will be repaid for most of the following year so think ahead for the best results.”

Get the best out of Christmas and the New Year by following some simple advice  - here’s some top tips from those in the know!

• Create a budget that gives a realistic amount you can afford to spend on Christmas – not just gifts but the cost of going out socialising, including that all important Christmas do.
• Money can be saved by eating in - our food and alcohol consumption peaks considerably over the Christmas period.
• Do not overstretch yourself buying expensive Christmas presents – bear in mind more thoughtful gifts and only spend what you can afford. This is easier to do if you plan ahead rather than panic buying and spending more than you intended.
• If you are going to use credit, always try and obtain interest free credit so you are not paying any more than necessary for presents.
• Try and get an interest free deferred payment. However, you do need to ensure you budget and make monthly payments into a separate account so when the payment is due you have the money available.
• Failure to repay a deferred payment in full will usually result in the credit being converted in a high APR loan – which nobody wants to do.
• If you think you are going to struggle over the Christmas period speak to your mortgage lender and other creditors. They will often be able to make short-term arrangements to help stop you drowning like giving you a payment holiday or reducing your repayment for a period.
• It is important you maintain all payments, but there are certain priority debts that have bigger implications if you don’t pay them for example mortgage / rent, secured loans, utilities, child maintenance etc. if you don’t make these repayments, you couldcface losing your home or having your gas, electricity or water supply cut off.
• If you are struggling to pay your priority debts because you are paying non priority debts (unsecured loans, credit / store cards, catalogues, mobile phones, overdrafts) you need to change your focus so priority debts get paid. You may also want to cancel your gym membership, magazine subscriptions and what better time to give up smoking!
• If, even after changing your focus and trying to budget more effectively, you are still struggling to make your monthly payments then a different solution is needed.  Debt solutions are available in the form of Debt Management Plans, Individual Voluntary Arrangements (IVAs), Protected Trust Deeds (PTDs) in Scotland and in extreme circumstances Bankruptcy.   

-ends-

For further information please contact Sue Flynn or Hannah Bryce, The Whole Caboodle on 01423 523000 or email hannah@thewholecaboodle.com

The Ministry of Justice/Insolvency Service recently held a presentation at a Stakeholder Event regarding their thinking on introducing Statutory Debt Management Scheme(s) under powers in the Tribunals Courts & Enforcement Act 2007. The present intention is to issue a consultation paper at the end of June, for which there is likely to be the minimum 12 weeks for responses before proceeding, should Ministers agree, to putting the Scheme(s) in place in April 2010.

It is so important that those involved in the debt industry do get involved in providing feedback for this consultation. 

The scheme should provide the following:

• Protection from creditor action

• Industry wide acceptance of income and expenditure guidelines which are reasonable

• Protection for client funds

• Protection for clients in terms of excessive fees being charged

• Transparency on performance so clients can see how quickly their payments are sent to creditors and how much creditors receive 

IN MID-APRIL 2009, US Treasury Secretary Timothy Geithner said the "vast majority" of US banks have more capital than needed, writes Olivier Garret, CEO at Casey Research.

"Currently, the vast majority of banks have more capital than they need to be considered well capitalized by their regulators," Geithner said in testimony to a congressional oversight panel on the US government's financial rescue program.

Geithner's remarks come on the heels of a surge in reported quarterly profits by the big banks. One of these banks, Bank of America (BAC), the world's second largest in terms of market capitalization, booked a first-quarter net income of $4.247 billion - 6% more than it made in all of 2008.

So is this the turnaround Geithner and the Treasury have been willing to beggar our nation's future for?

Before calling your broker and placing a big order for bank stocks based on all this "good" news, it might be prudent to answer a couple questions first.

For starters, just where did all this income come from? And has credit quality really improved?

The answers to both can be found buried in a company press release bearing the encouraging title "Bank of America Earns $4.2 Billion in First Quarter". I'd like to draw your attention to the four most telling excerpts from this release:

   1. "Equity investment income includes a $1.9 billion pretax gain on the sale of China Construction Bank (CCB) shares...

   2. "Noninterest income included $2.2 billion in gains related to mark-to-market adjustments on certain Merrill Lynch structured notes as a result of credit spreads widening...

   3. "Credit quality deteriorated further across all lines of business as housing prices continued to fall and the economic environment weakened...

   4. "Non-performing assets were $25.7 billion compared with $18.2 billion at December 31, 2008 and $7.8 billion at March 31, 2008, reflecting the continued deterioration in portfolios tied to housing."

Now we see that out of its $4.2 billion in profits, a total of $4.1 billion came from a one-time sale of CCB stock and marking up Merrill's book of mortgages.

If you subtract these one-time gains from net income and include preferred dividends, Bank of America actually lost $1.286bn. And as far as credit quality goes, I think number 3 above makes the situation as clear as can be.

Importantly, Bank of America is not the only big bank engaged in accounting sleight of hand. As The New York Times article "Bank Profits Appear Out of Thin Air" by Andrew Ross Sorkin points out:

"With Goldman Sachs, the disappearing month of December didn't quite disappear (it changed its reporting calendar, effectively erasing the impact of a $1.5 billion loss that month); J.P.Morgan Chase reported a dazzling profit partly because the price of its bonds dropped (theoretically, they could retire them and buy them back at a cheaper price; that's sort of like saying you're richer because the value of your home has dropped); Citigroup pulled the same trick."

So what's the takeaway?

When the Treasury Secretary tells you banks are well capitalized and you read in the press that financial institutions have turned a corner, don't buy it. And don't buy the stocks of these companies either. Not in our view at Casey Research.

The number of bankruptcies declared in Scotland since the start of 2009 has increased 158% compared with the same time last year, figures reveal.

But statistics from the Accountant in Bankruptcy also show an improvement on the previous quarter of the financial year, with 6% fewer declarations.

The AiB said new laws making it easier for people with low income to apply for bankruptcy had contributed to the leap.

A total of 231 Scottish firms also became insolvent in the fourth quarter.

Six of the companies went into receivership, 162 underwent compulsory liquidation and 63 underwent creditors' voluntary liquidations.

There were 3,722 awards of bankruptcy between the start of the year and the end of March.

The agency said the new Low Income, Low Asset (LILA) route into bankruptcy, introduced on 1 April 2008, accounted for 2,284 of these cases.

The LILA route means that individuals can apply for bankruptcy status without proving apparent insolvency - for example, showing that legal steps were being taken against them to retrieve money owed - or having creditor concurrence.

The AiB said in the fourth quarter of the 2008 financial year, 5,693 individual insolvencies also took place in Scotland.

This represents an increase of 71% compared with the same time last year, but a 2% decrease on the third quarter figure.

In all, 1,971 Protected Trust Deeds (PTDS) - a voluntary repayment agreement when debtors pass their estate to insolvency practitioners and negotiated repayments are made with creditors - were also granted.

This represented a 7% increase on the previous quarter and a 5% increase on the corresponding quarter of last year.

View the original article.

Protestors are gathering outside the Treasury this afternoon to demonstrate against Alistair Darling's Budget.

The demonstrators will call for financial support for those most affected by the economic crisis, and not the banks who contributed to the recession.

A statement said individuals had attempted to gather outside the government building earlier this morning but were prevented from doing so by the police.

Owen Jones, the protest organiser who was claims to have been threatened by the police with arrest this morning, said in the statement: "Millions of people across the country are being forced to pay for an economic crisis they had no role in starting with their jobs, homes and livelihoods.

"Meanwhile the bankers responsible for economic disaster have been bailed out with billions of pounds of taxpayers' money.

"Today students, pensioners, workers and the unemployed will protest outside the Treasury to demand: 'Where’s our bailout?'"

So we’ve seen the future, and it’s red. Even though Alistair Darling got all his bad news out first, there were gasps from the Tory benches at announcements that fulfilled the gloomiest of forecasts. Yes, the economy is set to shrink by 3.5 per cent this year; and, yes, borrowing will hit £175 billion.

Even if the Red Book (never has a document been more aptly named) doesn’t produce more horrors in the small print, the near future looks bleak, even viewed through the Chancellor’s rose-tinted spectacles.

And yet it’s not all bad news. Long ago, Labour voters would have pinched themselves at its boldness. In the days when Tony Blair was schmoozing billionaires and Peter Mandelson was declaring New Labour to be “intensely relaxed about people getting filthy rich,” Mr Darling could never have imposed a 50 per cent rate of tax on those earning more than £150,000.

This, at long last, was a Robin Hood Budget, taking from the rich to give to the poor. Arguably, if Gordon Brown had been so redistributive long ago, the government would be far more popular today. They couldn’t do it then. But today, with the City watching anxiously and the corpse of Prudence twitching in the corner of the Commons chamber, Mr Darling prepared to soak the rich.

In the end, it wasn’t a difficult decision. I understand that slashing tax relief on pensions for top earners was regarded by both the Chancellor and Gordon Brown as wholly uncontentious, and even raising the top tax rate from a planned 45 per cent “did not feature on the late-night list” of items to be wrangled over on the eve of the Budget.

While the move may raise less than Mr Darling expects, his move was not only right. It was also tactically clever. With both the Fabians and Compass detecting huge support for taxing the wealthiest more heavily, will David Cameron ditch the proposal or stick with it and invite much Tory anger?

Meanwhile, those who fear that Labour long ago lost its soul will be heartened. No, this wasn’t a Lloyd George people’s budget, but it was an attempt to deliver fairness, albeit under the tightest of constraints. Mr Darling’s attempt to make a little go a long way was akin to the miracle of the loaves and fishes, only without the miracle.

So many people will be disappointed. In particular, child poverty campaigners – who had thought the Chancellor might do more – decried his small rise in tax credits as enough to give a poor child less than a pint of milk a week.

But the unexpectedly bold moves, as I wrote earlier this week, were always likely to focus on the rich and the young jobless.

Mr Darling did, as expected, promise a job or training to all 16-24 year-olds out of work for a year. Quite right too. Even so, his grand pledge not to consign a generation to the scrapheap rings slightly hollow. Neets (those not in education, employment or training) are not just a by-product of recession but a growing army of those failed by ten years of a Labour government.

There was some other moderately good news. There wasn’t the cut in overseas aid that some charities had feared. Helping disabled children and grandparents who act as family childminders was a small but symbolic sign of where Labour may move next. The Budget done, Gordon Brown will be shifting his focus towards the big pre-election debates, such as the family, education, health and crime.

Has the Budget changed the mood? Maybe. There were almost no seismic (or even vaguely startling) announcements, aside from the mountain of debt. Trident and ID cards remain, alas, safe in this government’s hands. Still, Mr Darling may have done enough to draw a line under a dreadful period in which even welcome moves, such as the move to derail MPs’ gravy train, have backfired. The PM’s rictus grin as he announced the move on YouTube put one in mind of a tortured hostage instructed by his captors to smile for the cameras as evidence that he was being kindly treated.

But Mr Brown also called in his special advisers this week to apologise to them personally for the debacle of the Damian McBride affair, assure them that his focus was wholly on policy and tell them that, in his view, they could win the election.

Whether he has a chance will depend, in part, on how the Budget is received. First signs were that the City was staying calm, although critics may be waiting to see what’s in the financial services reform white paper, due out in a fortnight, before giving their full verdict.

Tories, predictably, will regard Mr Darling’s announcements as shameful proof that Labour, having excavated a pit for itself, is carrying right on digging. Labour supporters, by contrast, may admire the move to a more progressive tax system that favours those on modest incomes. A pity, they may think, that the government didn’t do it long ago.

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