11th June '08 - Dumped in Debt - Scottish Outlook Bleak
A study into the demographics of trust deeds and bankruptcy in Scotland has shown that couples who break up face the toughest financial future.
The study, carried out by an online debt management company, revealed that 17% of all couples in debt who separate face bankruptcy, while 29% of this group take the option of entering a protected trust deed.
The plight of couples experiencing relationship breakdown compared unfavourably with those debtors securely in wedlock. Despite having the highest level of debt, coming in at an average of just over £40,000, married couples are the least likely to turn to either bankruptcy or trust deeds, entering these at rates of 9% and 22% respectively.
Single debtors fell in the middle of the two other groups, with 11% choosing bankruptcy and 37% taking the route of a protected trust deed.
A spokesperson for the group who ran the survey commented, “The breakdown of a relationship has many financial implications: a reduction in net income and an increase in outgoings on bills such as mortgages, food bills and transport.
“With the divorce rate so high in the UK, more and more people are finding themselves in financial difficulties after separation, but seeking professional advice can be very beneficial, particularly where a marital home is owned.”
Yet for many, it is a case of the chicken or the egg, with charity Christians Against Poverty saying that 23% of its clients split up in the first place because of worries over debts.
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