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”.