Register of Insolvencies
The register of insolvencies is a statutory register about the insolvency of individuals and businesses in Scotland. Go to the registerPress Release: Scottish insolvencies for fourth quarter 2011-12
Press Release: Scottish insolvencies for fourth quarter 2011-12
25 April 2012Official figures released by Accountant in Bankruptcy (AiB) today report 4,856 personal insolvencies in Scotland in the fourth quarter of 2011-12 – a four per cent increase on the previous quarter and a 14 per cent increase on the same period in the previous year. Personal insolvency data includes bankruptcy awards and protected trust deeds.
In total there were 2,609 awards of bankruptcy, showing a minor decrease of 0.2 per cent on the previous quarter and a 3 per cent drop on the same period from the previous year. The number of protected trust deeds (PTDs) recorded was 2,247 in total, an increase of 10 per cent on the previous quarter and an increase of 43 per cent on the corresponding quarter of last year.
AiB received 385 notices of Scottish registered companies becoming insolvent or entering receivership in the fourth quarter of 2011-12.
Figures for the Debt Arrangement Scheme (DAS) show that the number of debt payment programmes approved under the Scheme have increased again this quarter, up 7 per cent from the previous quarter and almost doubling with a 97 per cent increase compared to the same period of last year. Improvements made to DAS last year along with the promotion of the Scheme have helped to raise awareness of the Scottish Government-backed debt management tool and its benefits.
Minister for Energy, Enterprise and Tourism, Fergus Ewing, who has responsibility for personal insolvency and debt management in Scotland outlined the work of the Scottish Government to support businesses and individuals:
“The Scottish Government is committed to retaining Scotland’s position as the most supportive and competitive environment for business in the UK. The Scottish Government supports 60,000 business premises that pay no or reduced rates through our Small Business Bonus Schemes, and business advice and support is available through Business Gateway and our Enterprise agencies. We will continue to monitor the figures on corporate insolvencies.
“Personal insolvencies have increased slightly this quarter due to an increase in protected trust deeds, although it is encouraging to see that, overall, bankruptcies have shown no increase compared to last quarter.
“I am pleased to see that the Debt Arrangement Scheme continues to see an increase in debt payment programmes approved, following AiB’s continuing efforts to raise awareness of the Scheme and its benefits. The freezing of interest and charges for debtors and a return of at least 90 per cent for creditors makes this a good option for both parties.”
Statistics in brief:
• There were 4,856 personal insolvencies in Scotland in the fourth quarter of 2011-12. This figure represents a 4 per cent increase on the previous quarter and a 14 per cent increase on the same period in the previous year.
• In total there were 2,609 awards of bankruptcy, showing a 0.2 per cent decrease on the previous quarter and a decrease of 3 per cent on the same period in the previous year. These can be broken down as:
- 2,142 awards were made as a result of debtor applications to the Accountant in Bankruptcy, a decrease of 4 per cent on the previous quarter and a decrease of 1 per cent on the same quarter last year. Of these, 1,060 were awarded bankruptcy through Low Income Low Asset route.
- 448 awards resulted from petitions to the courts by creditors, a 23 per cent increase on the previous quarter and a decrease of 2 per cent on the same quarter last year
- 19 awards were made as a result of petitions to the court by trustees in a trust deed. This represents a 39 per cent decrease on the previous quarter and a 72 per cent decrease on the same quarter last year.
- 2,142 awards were made as a result of debtor applications to the Accountant in Bankruptcy, a decrease of 4 per cent on the previous quarter and a decrease of 1 per cent on the same quarter last year. Of these, 1,060 were awarded bankruptcy through Low Income Low Asset route.
- 448 awards resulted from petitions to the courts by creditors, a 23 per cent increase on the previous quarter and a decrease of 2 per cent on the same quarter last year
- 19 awards were made as a result of petitions to the court by trustees in a trust deed. This represents a 39 per cent decrease on the previous quarter and a 72 per cent decrease on the same quarter last year.
• 942 debt payment programmes were approved under the Debt Arrangement Scheme, an increase of 7 per cent on the previous quarter and an increase of 97 per cent on the same quarter in the previous year.
Background
- A full statement of Scottish insolvency statistics for the fourth quarter of 2011-12 is available - http://www.aib.gov.uk/scottish-insolvency-statistics-quarter-4-2011-12
- 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 the 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 DPPs, 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 the Accountant in Bankruptcy.
- 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 website at www.aib.gov.uk
