Recession hitting homeowners hardest

That equates to 0.38 per cent of the population, significantly higher than 0.22 per cent in England and Wales, or 119,850 people.

PKF believes the middle classes have been particularly hard hit, as protected trust deeds (PTD) – where assets are transferred to a trustee and equity is used to pay creditors – reached their second highest level with 8,522 last year.

There is some good news – the number of Scottish bankruptcies were down 3.4 per cent in 2011, on the previous year. But PKF fears the situation in Scotland remains bleak.

Bryan Jackson, corporate recovery partner with PKF, said: “These figures show that Scots are continuing to experience extreme financial difficulties at a much greater rate than their counterparts south of the Border. This is undoubtedly due to the higher proportion of public sector jobs being cut, wage freezes in the public sector, and perhaps more speculatively an over-reliance on the housing bubble to fund lifestyles.

“It is starting to become clear that the section of the population being hit the hardest is now the employed homeowners.

“While there has been a fall in the overall number of Scots being made bankrupt, it is clear that the rise in PTDs indicates that the more affluent in society are starting to be adversely affected. With the last three years containing the three highest ever years for PTDs it is clear that home-owning, employed Scots are starting to bear the brunt of the recession.”

Financial advisers say people’s incomes have failed to keep up with rising bills and, in particular, energy costs.

“Everyone’s going through difficult times,” said Yvonne MacDermid, chief executive of Money Advice Scotland.

“Lost jobs, salaries not going up, people losing out on commission, overtime, or having their hours a reduced – it’s a variety of things. And then there’s the people already on the poverty line who are being pushed further and further.”

Further analysis of insolvency figures by Experian showed that the four highest concentrations of personal insolvency in the UK were all in Scotland.

Glenrothes topped the list with 76 cases per 10,000 households, followed by Kirkcaldy, Dunfermline and Hamilton, although all four had seen a reduction on the previous year

Simon Waller, head of customer management and collections for Experian UK and Ireland, said: “Whilst it is encouraging to see that personal insolvencies are declining throughout the UK, there are still pockets of society where financial stress has increased in 2011. Redundancy and relationship breakdown are typically the main reasons why people experience serious financial difficulties.”

Susan McPhee, head of policy for Citizens Advice Scotland, added: “These figures are truly shocking, and show how many Scots are still suffering in the economic crisis. Every individual one of these cases is a personal tragedy”

WHO’S WHO OF BANKRUPTCY

Ex-council community

Practical and enterprising people who have created comfortable lifestyles for themselves. Many live on pleasant, well-built council estates where a large proportion of residents have exercised their right to buy.

Suburban mindsets

Mostly married or middle-aged people, bringing up children in family houses. Some commute to city jobs from affluent suburbs while others earn good wages from manufacturing jobs close to where they live.

Industrial heritage

People living in communities historically dependent on mines, mills and assembly plants. Typically married and nearing retirement. Many work in offices and shops.

Terraced melting pot

Poorly-educated people working in relatively menial, routine occupations. Majority are young, some still single, others living with a partner with young children. Many belong to groups that have recently arrived in the UK.

Claimant cultures

Some of the most disadvantaged people in the UK, including significant numbers who have been brought up in welfare dependent families. Common on the periphery of provincial cities.

Small town diversity

People in smaller towns in neighbourhoods of older housing where there is relatively little change in the population. They have friends and family nearby and are likely to live the rest of their lives in the same community.

Careers and kids

Young couples whose lives are focused on the needs of their growing children and creating a comfortable family home. Well-educated, in management careers.

New homemakers

Mixture of young single professionals, young couples starting a family and older people downsizing into modern accommodation living in homes which are likely to have been built only in the last five years.

Liberal opinions

Young, professional, well-educated people, cosmopolitan in their tastes, liberal in their views, who enjoy the vibrancy and diversity of inner city living. Popular occupations include jobs in journalism, politics and the arts.

Upper floor living

People are on limited incomes renting small flats from local councils or housing associations. Typically these people are young single people or young adults sharing a flat.

Elderly needs

Pensioners who can no longer easily manage a house and garden. This group contains a large number those in their 70s, 80s and even 90s.

Professional rewards

The UK’s executive and managerial classes. Often in their 40s, 50s or 60s, some may be owners of small or medium-sized businesses whilst others have risen to senior positions in large multinational organisations.

Rural solitude

People who live in small villages, isolated farmhouses or cottages where farming and tourism are the mainstays of the economy. Neighbourhoods have a traditional country way of life with a strong sense of community.

Active retirement

Retired people who have decided to live in a community among people of similar ages and incomes. Likely to have an occupational pension accompanied by savings accumulated during their working lives.

Alpha territory

The most wealthy and influential individuals in the UK. Have risen to positions of power as owners of businesses, bankers, senior managers, or celebrities in sport and entertainment.

• See today’s Scotsman for a full breakdown of figures