Personal insolvencies at fourteen year low

The number of personal insolvencies in Scotland is now at its lowest level in fourteen years.

Bankruptcies increased this quarter with 997 awarded, but the number of awards is a 42.7 per cent decrease on the same quarter of the previous year. The annual total for 2015-16 is down 44.9 per cent from the previous year and the lowest annual total recorded in eleven years.

The number of PTDs decreased this quarter, with a total of 1,235 recorded. However, a total of 4,705 were recorded in 2015-16, a 6.0 per cent increase on the previous financial year.

The number of people entering the statutory debt management solution, the Debt Arrangement Scheme (DAS), increased to 538 in the fourth quarter of 2015-16. This is the second consecutive increase this financial year. A total of £9.4 million was repaid through DAS this quarter meaning the amount repaid in 2015-16 increased by 3.2 per cent on the previous year to £38 million.

The overall demand for statutory debt solutions in Scotland continues to decline, and at an increasing rate. The combined number of bankruptcies awarded, PTDs registered and DAS applications totalled 10,454 in 2015-16 which is 31.8 per cent lower than the previous year.

The number of Scottish registered companies becoming insolvent or entering receivership was 860 in 2015-16, 11 companies more than in the previous financial year.

The number of solvent liquidations increased to 358 this quarter. The annual number of member voluntary liquidations is 63.3 per cent higher than in the previous financial year.