Register of InsolvenciesThe register of insolvencies is a statutory register about the insolvency of individuals and businesses in Scotland. Go to the register
Scottish Government Scheme gains popularity with debtors
Scottish Government Scheme gains popularity with debtors25 July 2012
Figures released today show that Scottish personal insolvencies have risen in the first quarter of 2012-13 while the Scottish Government’s debt management tool, the Debt Arrangement Scheme (DAS), continues to show significant success as a viable option for Scots struggling with debt as numbers for the Scheme have more than doubled from the same period of last year.
Official statistics from Accountant in Bankruptcy (AiB), Scotland’s Insolvency Service, show an expected increase in personal insolvencies of 14.9 per cent from the previous quarter. The rise in personal bankruptcies this quarter is mainly due to a surge in applications during May in advance of fee increases, necessary to bring prices in line with actual costs for services, which came into effect from 1 June. This is apparent through the specific increase in bankruptcies by debtor application, which have increased by 36.1 per cent.
Figures show that the Debt Arrangement Scheme continues to be a popular solution with Scots struggling with debt. This Scottish Government backed tool is an alternative to bankruptcy which helps people in debt pay back what they owe over a longer period. The effects of the Scottish Government’s successful marketing campaign earlier this year have further raised awareness of this solution as shown by a 129.9% rise in debt payment programmes approved under the Scheme, compared to the same period last year.
Data on corporate insolvencies show that there were 420 notices of Scottish registered companies becoming insolvent or entering receivership - an increase of 9.1% compared to the previous quarter.
Minister for Energy, Enterprise and Tourism, Fergus Ewing, commented on the recent figures:
"The rise in bankruptcies, specifically applications for bankruptcy from debtors, can partly be attributed to a rush prior to 1 June before application fees increased. I fully expect this trend not to continue into the next quarter.
"However, we must not be complacent and instead face up to the challenge that these difficult economic times place upon us.
"AiB is working closely with stakeholders to develop debt relief and debt management options for the people of Scotland. It is important that individuals in debt receive appropriate information, at the right time, which is focused on their own particular needs. AiB has kick-started a pilot scheme to provide professional money advice from their premises in Kilwinning, in partnership with North Ayrshire Citizens Advice Service. In addition, significant effort is being directed to plans for bankruptcy law reform which will deliver a Financial Health Service for Scotland.
"The Scottish Government and our agencies continue to do all we can to strengthen economic growth – along with successful Schemes such as DAS which continue to help Scots repay all of their debts, recycling money back into the economy, Scotland is also outperforming the UK in terms of overall employment, and for the second year running the Ernst and Young Attractiveness survey showed Scotland has the best record of inward investment in terms of job creation anywhere in the UK.
"In Scotland, we announced last month that we are bringing forward a £105 million package of economic stimulus to maximise opportunities and we continue to urge the UK Government to follow our lead and invest now to promote economic growth in future.”
- A full statement of Scottish insolvency statistics for the first quarter of 2012-13 is available.
- Further information regarding insolvency in Scotland, including legislation, an be found on Accountant in Bankruptcy’s website
- The Debt Arrangement Scheme (DAS) is administered by AiB. Debt payment programmes approved under DAS allow individuals to repay their debts in full over an extended period of time while providing protection from enforcement by their creditors and safeguarding their home as long as mortgage payments are maintained. Further information on DAS is available at the DAS Scotland website