WIREDGOV

An Official Statistics Publication for Scotland.

The number of personal insolvencies in Scotland is now at its lowest level in ten years. The annual figure for 2014-15 is also down 19.1 per cent from the previous year.

Accountant in Bankruptcy (AiB) today released official statistics reporting personal and company insolvencies in Scotland for the fourth quarter of 2014-15. The figures show that personal insolvencies, which include both bankruptcies and protected trust deeds (PTDs), fell 15.2 per cent from the same period of the previous year. A total of 2,569 were recorded during this period.

Bankruptcies increased this quarter with 1,735 awarded which is a 10.0 per cent increase on the previous quarter. However the annual total for 2014-15 is down 5.5 per cent from the previous year and the lowest annual total recorded in seven years.

The number of PTDs also decreased this quarter, with a total of 834 recorded. This is the lowest quarterly number of PTDs recorded in fourteen years. The annual total also continues to decline and is a third lower than the previous year.

The number of people entering the statutory debt management solution, the Debt Arrangement Scheme (DAS), decreased to the lowest quarterly total in four years. The total number approved in 2014-15 is 4,147 which is down 9.4 per cent on the previous year’s total. A total of £9.4 million was repaid through DAS this quarter meaning the amount repaid in 2014-15 increased by more than a fifth on the previous year to £36.8 million.

The overall demand for statutory debt solutions in Scotland continues to decline, and at an increasing rate. The combined number of bankruptcies awarded, PTDs registered and DAS applications totalled 17,940 in 2014-15 which is 16.7 per cent lower than the previous year.

The number of Scottish registered companies becoming insolvent or entering receivership decreased by 8.2 per cent in 2014-15 to the lowest annual total recorded in seven years. This is also the third consecutive year of decline.

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 fourth quarter of 2014-15 is available –http://www.aib.gov.uk/scottish-insolvency-statistics-2014-15-quarter-4-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 https://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