WIREDGOV

ISSUED ON BEHALF OF ACCOUNTANT IN BANKRUPTCY

Official figures by Accountant in Bankruptcy (AiB), report that the number of personal insolvencies in Scotland continues to fall.

There was a total of 2,998 personal insolvencies in Scotland in the fourth quarter of 2013-14, compared to 3,335 in the previous quarter and a reduction of 14.0 per cent on the same quarter of the previous year.

The reduction in personal insolvencies is due to the decline in the number of Protected Trust Deeds (PTDs) registered, which have fallen by 24.0 per cent on the previous quarter.

The number of debt payment programmes (DPPs) approved under the Scottish Government debt management scheme (DAS) decreased by 13.3 per cent from the previous quarter, but is 4.8 per cent higher than the same quarter of the previous year. The annual totals for DAS show that since 2007-08 the uptake of DAS has increased more than ten-fold.

Corporate insolvency figures have increased slightly, by 6.6 per cent with 244 Scottish registered companies becoming insolvent or entering receivership this quarter.

Minister for Energy, Enterprise and Tourism, Fergus Ewing, commented:

“Another drop in the number of personal insolvencies is welcome, especially with the figures showing a general decline since 2008-09.

“£8.1 million has been repaid through the Scottish Government Debt Arrangement Scheme (DAS) this quarter, with a total of £30.0 million repaid in 2013-14, helping to recycle funds into the economy. It is encouraging to see that ten times more people have chosen to repay their debts under this statutory scheme than the number seven years ago.

The Minister went on to outline the work of the Scottish Government to support Scots facing the burden of debt.

“With the passing of the Bankruptcy and Debt Advice (Scotland) Bill (BADA(S)) in March this year, we have taken a major step forward in providing a ‘Financial Health Service’ for the most financially vulnerable people in Scotland.

“This new Bill will offer debt relief quickly and less expensively than under the current scheme, while providing access to financial education for people in need of additional support”.