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Bankruptcy numbers declining

Scots taking advantage of Scottish Government’s debt arrangement scheme.

Figures released recently show that more Scots are using debt payment programmes (DPPs) to help them manage their debts.

Official statistics released by Accountant in Bankruptcy (AiB) show that the number of DPPs approved under the Scottish Government Debt Arrangement Scheme (DAS) continues to grow and has increased by almost a quarter from the previous period.

There was a total of 2,968 personal insolvencies in the first quarter of 2014-15, a 25.8 per cent decrease from the total recorded in the same quarter of the previous year. The overall reduction in personal insolvencies is due to the decline in the number of protected trust deeds (PTDs) registered and the number of bankruptcies awarded. Personal insolvencies, which includes both bankruptcies and PTDs are at their lowest recorded level since the first quarter of 2005-06.

There was a 2.5 per cent increase in the number of Scottish registered companies becoming insolvent or entering receivership, compared to the previous quarter. This equates to an additional six companies becoming insolvent or entering receivership.

Minister for Energy, Enterprise and Tourism, Fergus Ewing said : “It is gratifying to see an increased uptake on the DAS debt payment programme this quarter. This highlights that DAS has opened up a whole new avenue for debtors battling financial difficulties. The continued reduction in personal insolvencies is also very welcome.

“A total of £8.6 million has been repaid through DAS this quarter. This figure is particularly encouraging as The Scottish Government continues to work towards creating ‘Scotland’s Financial Health Service’, with DAS being one of the first building blocks towards creating that.

“This demonstrates that Scotland is capable of administering personal insolvency to ensure that the needs of creditors and businesses is balanced with the needs of debtors. We can ensure that those burdened with debt can access the debt relief they need and those who are able to pay, do so”.

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

 

Channel website: https://www.icaew.com

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