WIREDGOV

Issued on behalf of Accountant in Bankruptcy.

An Official Statistics Publication for Scotland.

The number of individual Scots made bankrupt is now at its lowest level since April 2008.

Accountant in Bankruptcy (AiB) today released official statistics reporting personal and company insolvencies in Scotland for the second quarter of 2014-15. The figures show that personal insolvencies, which include both bankruptcies and protected trust deeds (PTDs), fell by 12.5 per cent on the same period of the previous year. A total of 2,991 were recorded during this period.

There were 1,654 awards of bankruptcy this quarter, down 5.8 per cent on the previous quarter and 3.9 per cent on the corresponding quarter of the previous year. This represents the lowest number of bankruptcies awarded since the fourth quarter of 2007-08, the last quarter before access to bankruptcy was widened by the introduction of the Low Income Low Asset (LILA) route.

The number of PTDs recorded increased to 1,337, a 10.3 per cent increase on the previous quarter. However this total was 21.2 per cent lower than the corresponding quarter of the previous year.

The number choosing to enter the statutory debt management solution, the Debt Arrangement Scheme (DAS), decreased as 1,156 cases were approved, down 8.3 per cent from the previous quarter and down 1.2 per cent on the same period of the previous year. A total of £9.4 million was repaid through this Scheme in the second quarter of 2014-15.

The overall demand for statutory debt solutions in Scotland continues to decline. The combined number of bankruptcies awarded, PTDs registered and DAS applications approved totalled 4,147 this quarter which is 9.6 per cent lower than the corresponding quarter of the previous year.

The number of Scottish registered companies becoming insolvent or entering receivership decreased by 16.4 per cent from the last quarter. This quarter’s total was also 22.0 per cent lower than the same quarter of the previous year.

The figures released today were produced by independent statistical staff free from any political interference, in accordance with professional standards set out in the Code of Practice for Official Statistics.

Notes To Editors

• A full statement of Scottish insolvency statistics for the second quarter of 2014-15 is available -http://www.aib.gov.uk/scottish-insolvency-statistics-2014-15-quarter-2-release

• Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland can be accessed at:http://www.scotland.gov.uk/Topics/Statistics/About

• Accountant in Bankruptcy supervises all personal insolvencies in Scotland and administers those bankruptcies where appointed. Insolvent individuals in Scotland are subject to bankruptcy (sequestration) or enter protected trust deeds (PTDs) under the Bankruptcy (Scotland) Act 1985. The 1985 Act was amended by the Bankruptcy (Scotland) Act 1993 and on 1 April 2008, part 1 of the Bankruptcy and Diligence etc. (Scotland) Act 2007 came into force making significant changes to some aspects of bankruptcy in Scotland. Changes included the introduction of LILA, a route into bankruptcy for people with low income and low assets. The changes also took a number of processes out of the Scottish Court system, reducing costs and freeing up court time.

• Protected trust deeds (PTDs) are voluntary arrangements, where the debtor passes their estate to an insolvency practitioner who arranges to repay part of the debt to creditors on the debtor’s behalf. This is similar to Individual Voluntary Agreements (IVAs) in England and Wales, although there are important differences in the way they are set up and administered.

• The Debt Arrangement Scheme (DAS) is administered by Accountant in Bankruptcy. Debt payment programmes approved under DAS allow individuals to repay their debts in full over an extended period of time whilst providing protection from enforcement by their creditors and safeguarding their home as long as mortgage payments are maintained. Further information on DAS, including a register of debt payment programmes, is available at http://www.dasscotland.gov.uk

• Details of bankruptcies, PTDs, liquidations and receiverships are found on the register of insolvencies, which is maintained by Accountant in Bankruptcy and can be found at http://roi.aib.gov.uk/roi

• Accountant in Bankruptcy is also responsible for receiving, extracting and recording information from certain forms relating to company liquidations and receiverships. The legislation appropriate to liquidations and receiverships is contained in the Insolvency Act 1986 and the Insolvency (Scotland) Rules 1986.

• Further information regarding insolvency in Scotland, including legislation, can be found on the Accountant in Bankruptcy’s website at www.aib.gov.uk

Contact

Allan Holmes , Communications Officer, Accountant in Bankruptcy

Telephone: 0300 200 2629