23/04/14 10:17
Personal insolvencies in Scotland continue to decrease
An Official Statistics Publication for Scotland.
Personal insolvencies are down again this quarter as the demand for statutory debt solutions in Scotland continues to decline.
Accountant in Bankruptcy (AiB) today released official statistics reporting personal and company insolvencies in Scotland for the fourth quarter of 2013-14. The figures show that total personal insolvencies continue to decrease. This quarter shows a reduction of 10.1 per cent on the previous quarter and a reduction of 14.0 per cent on the same quarter of the previous year. The longer term trend shows a general decline since 2008-09.
This reduction in personal insolvencies is due to a sharp fall in the number of protected trust deeds (PTDs). The number of PTDs decreased by 24.0 per cent on the previous quarter and are also 23.0 per cent lower than the total recorded in the corresponding quarter of the previous year.
The number of bankruptcies, however, increased by 3.9 per cent compared to the previous quarter with a total of 1,726 awarded. This is 5.9 per cent lower than the number awarded in the same quarter of the previous year.
The overall demand for statutory debt solutions in Scotland continues to decrease. The combined number of bankruptcies awarded, PTDs registered and Debt Arrangement Scheme (DAS) applications approved totalled 4,022 during the fourth quarter of 2013-14 which is 9.6 per cent lower than the corresponding quarter of the previous year.
The number of Scottish registered companies becoming insolvent or entering receivership increased as AiB received 244 notices in the fourth quarter of 2013-14. This is a 6.6 per cent increase on the previous quarter and a 70.6 per cent increase on the same quarter of the previous year.
Figures for DAS show that there were 1,024 debt payment programmes (DPPs) approved under the Scheme in the fourth quarter of 2013-14. This is 13.3 per cent lower than the previous quarter although 4.8 per cent higher than the same quarter of the previous year. The amount repaid through DAS in this quarter increased by 6.1 per cent to £8.1 million bringing the total repaid in the year 2013-14 to £30.0 million.
The figures released today were produced by independent statistical staff free from any political interference, in accordance with professional standards set out in the Code of Practice for Official Statistics.
A full statement of Scottish insolvency statistics for the fourth quarter of 2013-14 is available - http://www.aib.gov.uk/scottish-insolvency-statistics-2013-14-quarter-4-0
Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland can be accessed at: http://www.scotland.gov.uk/Topics/Statistics/About
Accountant in Bankruptcy supervises all personal insolvencies in Scotland and administers those bankruptcies where appointed. Insolvent individuals in Scotland are subject to bankruptcy (sequestration) or enter protected trust deeds (PTDs) under the Bankruptcy (Scotland) Act 1985. The 1985 Act was amended by the Bankruptcy (Scotland) Act 1993 and on 1 April 2008, part 1 of the Bankruptcy and Diligence etc. (Scotland) Act 2007 came into force making significant changes to some aspects of bankruptcy in Scotland. Changes included the introduction of LILA, a route into bankruptcy for people with low income and low assets. The changes also took a number of processes out of the Scottish Court system, reducing costs and freeing up court time.
Protected trust deeds (PTDs) are voluntary arrangements, where the debtor passes their estate to an insolvency practitioner who arranges to repay part of the debt to creditors on the debtor’s behalf. This is similar to Individual Voluntary Agreements (IVAs) in England and Wales, although there are important differences in the way they are set up and administered.
The Debt Arrangement Scheme (DAS) is administered by Accountant in Bankruptcy. Debt payment programmes approved under DAS allow individuals to repay their debts in full over an extended period of time whilst providing protection from enforcement by their creditors and safeguarding their home as long as mortgage payments are maintained. Further information on DAS, including a register of debt payment programmes, is available at http://www.dasscotland.gov.uk
Details of bankruptcies, PTDs, liquidations and receiverships are found on the register of insolvencies, which is maintained by Accountant in Bankruptcy and can be found at http://roi.aib.gov.uk/roi
Accountant in Bankruptcy is also responsible for receiving, extracting and recording information from certain forms relating to company liquidations and receiverships. The legislation appropriate to liquidations and receiverships is contained in the Insolvency Act 1986 and the Insolvency (Scotland) Rules 1986.
Further information regarding insolvency in Scotland, including legislation, can be found on the Accountant in Bankruptcy’s website at www.aib.gov.uk