Scotland’s Personal Insolvency Rate up by Almost 12%

July 24, 2018

The number of people becoming personally insolvent in Scotland increased by 11.8 per cent during the first quarter of 2018/19 as compared with the same period last year.

The figures refer to the number of Scots entering either bankruptcy or a protected trust deed (PTD) as a means of dealing with their debt management problems.

According to official data from the Accountants in Bankruptcy (AiB), there were 1,236 bankruptcy awards between April 1st and the end of June 2018, which is taken as being the first quarter of the 2018/19 period.

That number of bankruptcy awards represents a 6.5 per cent year on year decline in the quarter but there was a much sharper rise in the number of PTDs awarded within the same timeframe.


In fact, the number of Scots who entered into a PTD increased from 1,547 in the first quarter of 2017/18 to 1,972 in the same period of this year.

Meanwhile, Debt Arrangement Schemes (DAS), which are not counted as a proper form of insolvency but which are designed to formalise a debt repayment process, also increased in number and by 8.5 per cent between last year and this year.

A total of 648 debt repayment plans were formalised by DAS in the first quarter of the AiB’s financial year, compared to 597 between April and the end of June 2017.

“While the number of individuals entering insolvency continues to be very much lower than 10 years ago, these figures clearly illustrate personal insolvencies remain on an upward trend from the first quarter of 2015-16,” said the AiB’s chief executive Richard Dennis.

“With consumer borrowing now surpassing the levels seen before the 2008 crash, we are leading an ambitious programme of reform to make sure the debt solutions offered by the Scottish government remain relevant in today’s society.”

Mr Dennis said that he expects incoming changes to Scotland’s insolvency and debt resolution legislation to have a positive impact on trends that currently show personal insolvency rates are on the rise.

The new rules coming into effect in October 2018 have been designed to make DAS more readily accessible and more flexible in ways that help consumers avoid bankruptcy.

If you live anywhere in Scotland and you’re unsure of what to do about your debts then Scotland Debt Solutions can help. Contact us to arrange a FREE and confidential consultation.

John Baird

Insolvency Adviser

Tel: 0800 063 9250

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