Bankruptcies at lowest level in over eleven years

22 Jul 2015 12:39 PM

An Official Statistics Publication for Scotland.

Bankruptcies decreased sharply this quarter with 757 awarded which is a 56.5 per cent decrease on the previous quarter, this figure also represents a decrease of 56.9 per cent on the same quarter of the previous year.

Accountant in Bankruptcy (AiB) today released official statistics reporting personal and company insolvencies in Scotland for the first quarter of 2015-16.

The number of bankruptcies awarded, PTDs registered and DAS approved totalled 2,136 in the first quarter of 2015-16. The number of people accessing statutory debt solutions in Scotland declined by a third in the last quarter and almost halved in the last year.

The first quarter of 2015-16 figures show that personal insolvencies, which include both bankruptcies and protected trust deeds (PTDs), fell 45.8 per cent from the same period of the previous year. A total of 1,606 were recorded during this period, which is the lowest number recorded in over 14 years.

The total number of bankruptcies awarded decreased a 56.5 per cent on the previous quarter to 757. This represents a decrease of 56.9 per cent on the same quarter of the previous year. On the other hand, the number of PTDs increased slightly this quarter, with a total of 849 recorded. This represents an increase of 1.8 per cent on the previous quarter, however the number of trust deeds protected fell 30.0 per cent from the same quarter in 2014-15.

The number of people entering the statutory debt management solution, the Debt Arrangement Scheme (DAS), decreased to the lowest quarterly total in over four years. A total of 530 Debt Payment Programmes were approved this quarter, a decrease of 16.3 per cent on the previous quarter. A total of £9.5 million was repaid through DAS this quarter.

The number of Scottish registered companies becoming insolvent or entering receivership remained steady in the first quarter of 2015-16, with 197 companies becoming insolvent or entering receivership. However this is number represents a decrease of almost a quarter (24.6 per cent) on the same quarter in 2014-15.

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 first quarter of 2015-16 is available –http://www.aib.gov.uk/scottish-insolvency-statistics-2015-16-quarter-1-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 https://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