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The number of people becoming bankrupt in Scotland rose by a quarter in the first three months of 2011, according to official figures.

In the months of January through to March over 5000 people were declared bankrupt. That figure was a 25% increase on the previous quarter. It was however a 1% decrease in the number of people declaring bankruptcy in the same period last year.

At the same time the number of people opting for a voluntary protected trust deed to help solve their debt problems rose by 51%. Trust Deeds are the Scottish equivalent to Individual Voluntary Arrangements (IVAs). They allow a person struggling to repay their debts to restructure their repayments and avoid bankruptcy.

In response to the figures Enterprise Minister, Fergus Ewing said 'While these new figures mark an increase in personal bankruptcies this quarter, I am encouraged that there has been reduction on levels when compared to this time last year.'