Personal bankruptcies rose by almost 15% in Scotland last year according to the latest official figures, and experts warn the situation will worsen when Scottish insolvency laws are relaxed.

The change in the bankruptcy laws, expected in April, coupled with a tightening of the rules for people seeking to borrow their way out of trouble, will see the number of people unable to keep up with debts climbing further.

The total number of Scots declared insolvent last year was 13,814, according to statistics published by the Insolvency Service yesterday. That figure has quadrupled in a decade.

Nevertheless, it is a rise of just 1.3% from the 2006 total. That is because the headline insolvency figure is made up of two elements: the number of bankruptcies and the number of people who entered into a Protected Trust Deed (PTD).

While the number of people entering into a PTD, a mechanism that allows an individual to write off some debt, decreased by 7.5% to 7595, the number declared bankrupt rose by 14.5% to 6219.

The sharp rise in personal bankruptcies during 2007 is concerning as later this year the Scottish Government plans bring insolvencies laws in Scotland in line with those in England and Wales.

At present, a person declared bankrupt must wait three years before they are discharged. The change in the law would reduce this to 12 months.

When this change was introduced in England and Wales there was a large rise in the number of people who declared themselves bankrupt. That pattern is expected to be repeated in Scotland.

Matt Henderson, business recovery and insolvency partner with Johnston Carmichael, said: "It is obviously easy to envisage a situation where going through the reduced bankruptcy period could be highly tempting for those who, for example, have large credit card debts.

"The floodgates for personal bankruptcy in Scotland could be set to open."

Problems for those already struggling to meet their monthly payments are likely to get worse as the effects of the worldwide credit crunch and rising mortgage payments make themselves felt over the coming year.

Kaliani Lyle, chief executive of Citizens Advice Scotland, said: "Last year the CAB service handled over £211m of debt, a 34% increase on the previous year.

"Bankruptcy is a serious step with long-term consequences, but for those who are trapped in unserviceable debt it offers a glimmer of hope at the end of a very stressful situation.

"It's important those who have no alternative are able to access bankruptcy - which is why we welcome the recent Scottish Government announcement - but more responsible lending is also needed to help avoid many of these situations."

The figures for corporate insolvencies published yesterday were more encouraging. They showed the number of companies in Scotland going into insolvency during 2007 was 657, down 2.5% from the 2006 total.

Nevertheless, an average of 55 Scottish companies are still failing every month.