WIREDGOV

Issued on behalf of Accountant in Bankruptcy.

Official statistics released by the Accountant in Bankruptcy (AiB) for the second quarter of 2014-15, continue to show a general decline in personal bankruptcies since 2008-09.

Awards for bankruptcy this quarter fell 5.8 per cent and 3.9 per cent from the same quarter last year, which shows bankruptcies at its lowest level in over six years. There was a total of 2,991 personal insolvencies this quarter, a minimal increase on the previous quarter of 0.8 per cent, but a 12.5 per cent decrease from the same quarter of the previous year. This small increase in personal insolvencies is due to the increase in Protected Trust Deeds, which have risen by 10.3 per cent this quarter.

The data on corporate insolvencies shows that there were 209 notices of Scottish registered companies becoming insolvent or entering receivership this quarter. This is a 16.4 per cent decrease on the last quarter and a 22.0 per cent decrease on the same quarter last year.

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

“The continuation of the general downward trend in personal bankruptcies is encouraging. While there has been a small increase in personal insolvencies as a whole, this suggests that our recent changes to the Protected Trust Deed regulations have ensured that we continue to provide an appropriate debt remedy, short of bankruptcy, for the people of Scotland.

“It is reassuring to see that repayments through the Debt Arrangement Scheme (DAS) continue to develop as new applications begin to level off. This is evident in figures showing the scheme repaying £9.4 million to creditors, a £2.2 million increase on the same quarter last year.

“This winter will see the introduction of “Scotland’s Financial Health Service”. A new web portal will be provided, which will bring together different strands of information, including debt advice, employability and access to ethical and affordable lending.

“This new service will play a vital role for people struggling under the burden of debt or financial concerns. The introduction of the Bankruptcy and Debt Advice (Scotland) Act 2014, from April next year, will further strengthen our support to the most financially vulnerable people in Scotland through measures like compulsory money advice, financial education and a new route into bankruptcy for people with few assets."

Notes To Editors

A full statement of Scottish insolvency statistics for the second quarter of 2014-15 is available.

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

Contact

Allan Holmes, Communications Officer, Accountant in Bankruptcy

Telephone : 0300 200 2629