FEWER BANKRUPTCIES IN SCOTLAND

Fewer Scots have been made bankrupt in comparison to a year ago, according to latest figures from Accountant in Bankruptcy (AiB).

Between October and December 2017 there were 1,089 awards of bankruptcy, a drop of 4.2% from the 1,137 in the same period for 2016-17.

Personal insolvencies in Scotland have more than halved since 2008-09.

There was evidence more people were seeking to take control of their finances and pay their debts in full without suffering the uncertainty and stress of insolvency. Approved debt payment programmes under the Scottish Government’s Debt Arrangement Scheme rose by 8.5% in the third quarter of 2017-18, up from 528 to 573.

Commenting on these figures, Patricia Gibson MP said:

“The longer term trend for bankruptcy is very much a downward one and it is heartening to see this reflected in these recent figures.

“These Accountant in Bankruptcy figures indicate the numbers of people falling into bankruptcy and signing protected trust deeds are around half of what we saw eight or nine years ago.

“The Debt Arrangement Scheme is the only statutory debt management programme in the UK and the SNP is rightly proud of its success in providing a viable option for those seeking to pay their debts without plunging into insolvency.”

The number of Scottish companies going out of business also continued to fall, with total corporate insolvencies also down by 3.8%.

Total corporate insolvencies dropped from 210 to 202 compared to the same quarter a year ago. No receiverships were recorded for the fifth quarter in succession. There were also 129 members' voluntary liquidations, which is down from the 152 recorded in the same quarter for 2016-17.

Patricia added:

“It is testament to the resilience of our industries, particularly in key sectors such as oil and gas that we are beginning to see economic conditions improving and this is reflected in these encouraging corporate insolvency figures. Businesses continuing to trade, means workers keep their jobs and this contributes to the sustainable economic growth of Scotland.”

A full statement of Scotland’s insolvency statistics for the third quarter of 2017-18 is available.

Further information regarding insolvency in Scotland, including legislation, can be found on the Accountant in Bankruptcy’s website www.aib.gov.uk

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