Scotland’s Personal Insolvency Rates Are Up But Trending Downward, Says AiB

July 28, 2016

The number of Scots who entered a form of personal insolvency during the three months to the end of June were up by 7.8 per cent as compared with the previous quarter.

However, the broader pattern in terms of the number of Scots entering either bankruptcy or a protected trust deed in recent quarters is said to be following a distinctly downward trend.

Official figures on personal insolvency rates in Scotland have been published by the Accountant in Bankruptcy (AiB) but assessing the numbers is not as straightforward as it would ordinarily be because a variety of important personal debt-related regulations were overhauled last year.

With that in mind, the AiB is describing the latest figures on insolvency rates among indebted Scots as reflecting a “return to relative stability following a bedding-in period” for the new regulations.

Relevant new rules were enacted as of April 1st 2015 when the Bankruptcy and Debt Advice (Scotland) Act was passed, with the aim of the changes being to ensure that more people struggling with serious debt problems could access solutions that help them turn around their financial situation.

According to the AiB, there were 1,144 people in Scotland who entered bankruptcy in the three months to the end of June this year, which represents a 14.7 per cent jump compared with figures for last year but a 41 per cent fall compared with the same figure for 2014.

“We are now seeing the numbers settling down to a more regular pattern following the significant, and expected, drop after the introduction of the new laws,” said Scottish business minister Paul Wheelhouse in a statement.

“Compared to the same quarter from two years ago, prior to these changes, the number of people falling into insolvency today is down by more than a third.

“This shows those most in need can access the debt relief they require to help them on the road to a fresh financial start – but also that the long term movement is a downward one.”

The AiB also noted in its recent release of figures that there was around £9.3 million paid back to creditors by Scottish entrants into Debt Arrangement Schemes during the three months to the end of June 2016.

If you live anywhere in Scotland and are worried about your personal debt situation then Scotland Debt Solutions can help. Contact us directly to arrange a free and confidential consultation.






John Baird

Insolvency Adviser

Tel: 0800 063 9250

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