Total personal insolvencies, including both bankruptcies and protected trust deeds, totalled 2,345 for the third quarter of 2015-16 up to 31 December, which is a 5.2% increase on the previous quarter.

However, personal insolvencies in Scotland have been dropping consistently since 2008-09, and the numbers fell significantly in the first quarter of 2015-16, which marked the first months since new legislation came into force designed to make the process simpler.

The new figures for the third quarter of the year show 989 bankruptcies were awarded - a marginal increase of 2.5% on the previous quarter, but 37.4% lower than during the same period a year ago. Protected trust deeds recorded went up 7.2% from the previous quarter to 1,356.

The number of new debt payment programmes approved under the Debt Arrangement Scheme (DAS) increased 13.4% to 517 this quarter after several quarters of decline.

A total of 312 DAS debt payment programmes were completed in the third quarter of 2015-16, which is a 46.5% increase compared to the same quarter of 2014-15. Already 969 DAS debt payment programme cases have been completed in the first three quarters of 2015-16, which is 73 more than the whole of 2014-15.

Business minister Fergus Ewing said: “These figures indicate more people are taking action to regain control of their finances.

‘Innovative measures like compulsory money advice, financial education and a new route into bankruptcy for people with few assets have now been absorbed by the industry and those most in need are now accessing the debt relief they require to help them on the road to a fresh financial start.’ 

The data shows the number of Scottish business failures rose from 180 in the previous quarter to 254. However, AiB says this may not be a wholly accurate representation of what happened during the period, due to the time lag between the date a corporate insolvency is awarded or a member's voluntary liquidation is registered and when AiB receives notice.

The figure for the quarter is made up of 172 compulsory liquidations and 80 creditor's voluntary liquidations. There were only two receiverships recorded for the quarter.

Tim Cooper, chair of R3 in Scotland, the insolvency trade body said: ‘The number of personal insolvencies in Scotland has been falling over the last number of years. Although they have risen slightly this quarter, they are still well below the level for this time last year.

‘However, recent job losses in the oil and gas sector could have pushed some into insolvency. Still, our latest research shows that one-in-five Scots expect their personal financial situation to improve over the next six months. It’s good to see optimism.’

Cooper said the substantial increase recorded in the number of corporate insolvencies this quarter, ‘goes against the downward trend we’ve seen in recent years’.

‘Over the course of this year, we are likely to experience further stress in the oil and gas sectors, and that having a wider impact across Scotland. Many sectors may already be feeling the effects, including the supply, leisure and hospitality industries.

‘We could see the numbers rise further when an interest rate rise comes, and thousands of “zombie” businesses are no longer able to keep their heads above water when it comes to meeting their repayments. Businesses need to plan ahead so that when a rise does eventually come they are financially prepared.’