The number of Scots declared bankrupt dropped by 8% in the second quarter of the year in a sharp reversal of the previous trend.

Although there were 5767 personal insolvencies during the three months to the end of September, that compares to a rise of 11% to 6294 in the previous quarter.

It is also a drop of 4% on the same period for the previous year.

Fergus Ewing, the Minister for Community Safety, welcomed the decrease and pledged ministers would do “absolutely everything we can to support Scottish business and families during these tough times”.

“That includes our work to make sure people who are struggling with unmanageable debt get the help and support they need.”

Mr Ewing said the Scottish Government was helping people in debt by extending protection through schemes like the Low Income Low Asset (LILA) route into bankruptcy which provide debt relief to people who were previously struggling to pay their bills.

He said the Government would build on the success of the LILA scheme which allows people to request to be declared bankrupt without having to prove insolvency. It is designed to make bankruptcy more accessible to non-homeowners and those on minimum wage.

Gordon MacLure, an insolvency partner at Johnston Carmichael accountants, said the overall decrease in the number of personal insolvencies could be attributed to the diminishing initial effect of the LILA scheme.

He added: “The increase in protected trust deeds compared to the same quarter in 2008 shows that increasing numbers of people who have an income from employment, and may previously have been managing their finances, are now struggling with their debt.”

The figures coincided with the publication of other statistics that show Scotland’s economy shrunk for the fourth successive quarter.

But the decline – 0.8% – is smaller than in the last two quarters, according to yesterday’s official figures for gross domestic product.

Both sets of figures were issued as two of the Bank of England’s most senior figures toured Glasgow’s east end to view progress on the 2014 Commonwealth Games sites and see how the city is tackling the challenges of long-term unemployment.

Sir David Lees and Dr Charles Bean, deputy governor of the Monetary Policy Committee, visited Games’ venues and the athletes’ village as well as Bridgeton Cross, Dalmarnock Railway Station, the M74 extension and the Wise Group whose training programmes help people back into work after long periods of unemployment.

The Wise Group has already helped 27,000 people find jobs and Dr Bean said: “The Bank’s focus is getting the economy back on track with low inflation and steady growth so that the necessary planning and investment for such projects can take place in a more stable economic environment than we have seen recently.”

Glasgow City Council leader Steven Purcell, who accompanied Sir David and Dr Bean, said he was “extremely grateful” for the chance to speak to them about the economic difficulties Glasgow faces.

He said: “I am confident that Sir David and Charles have left Glasgow with a clear understanding that continued support for Glasgow’s economy and continued public and private investment in the city is the best long-term recovery plan.”

The visit was arranged by the Scottish Council for Development and Industry (SCDI) as part of the Monetary Policy Committee’s week of direct engagement in Scotland.

SCDI chief executive Lesley Sawers said: “The importance of Glasgow’s east end regeneration cannot be over-stated, nor can the challenges of addressing long-term unemployment within this part of the city.”

She said she was “delighted” that Sir David and Dr Bean had taken the chance “to see for themselves the opportunities and challenges that lie ahead for economic development in Glasgow”.