Register of Insolvencies

The register of insolvencies is a statutory register about the insolvency of individuals and businesses in Scotland.

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Quarter 2 Scottish insolvency statistics 2011/12

Statistics showing insolvencies in the second quarter of year ending 31 March 2012 are published today, 19 October 2011, by the Accountant in Bankruptcy. Figures are collated to 30 September 2011.
 
The number of Debt Payment Programmes approved under the Debt Arrangement Scheme (DAS) is also reported. 
 
PERSONAL INSOLVENCIES
 
Personal insolvency data consists of both bankruptcy and Protected Trust Deed (PTD) figures.
 
There were 5,378 personal insolvencies in Scotland in the second quarter of 2011/12. This figure represents a 1 per cent increase on the previous quarter and a 4 per cent increase on the same period in the previous year.
 
In total there were 2,852 awards of bankruptcy, a decrease of 3 per cent on the previous quarter and a decrease of 8 per cent on the same period in the previous year.
 
The number of Protected Trust Deeds recorded was 2,526 in total, an increase of 6 per cent on the previous quarter and an increase of 22 per cent on the corresponding quarter of last year.
 
 
Chart 1: Insolvencies in Scotland

Scottish Insolvencies by quarter

The individual awards of bankruptcy were broken down as follows:
 
  • 2,348 awards were made as a result of debtor applications to the Accountant in Bankruptcy, a decrease of 5 per cent on the previous quarter and an increase of 6 per cent on the same quarter last year. Of these, 1,223 were awarded bankruptcy through LILA
  • 434 awards resulted from petitions to the courts by creditors, a 2 per cent decrease on the previous quarter and a decrease of 43 per cent on the same quarter last year
  • 70 awards were made as a result of petitions to the court by trustees in a trust deed. This represents a 63 per cent increase on the previous quarter and a 38 per cent decrease on the same quarter last year
 
Note: The new Certified route into bankruptcy commenced on 15 November 2010. For the second quarter of 2011/12, 770 debtors were awarded bankruptcy who would otherwise have been unable to qualify. This represents a 1 per cent increase on the previous quarter where 759 awards were made through the Certified route.
 
 
Table 1: Personal Insolvencies by Quarter
 
Financial Year                    2010/11 

 2011/12 (p2)

    
            % change 2011/12 Q2 on:
Quarter Q2 Q3 Q4 Q1 Q2 2011/12 Q1 2010/11 Q2
Awards of Bankruptcy 3,099 2,501 2,698 2,947 2,852 -3% -8%
               
Breakdown of awards by source              
Creditor Petitions 762 493 456 445 434 -2% -43%
Trust Deed Petitions 113 75 69 43 70 63% -38%
               
Debtor Applications 2,224 1,933 2,173 2,459 2,348 -5% 6%
of which LILA 1,631 1,368 1,204 1,305 1,223 -6% -25%
of which other 593 565 969 1,154 1,125 -3% 90%
               
Protected Trust Deeds 2,076 2,090 1,575 2,372 2,526 6% 22%

p2 - Figures for 2011/12 will remain provisional until final validation of end of financial year figures.

 
 
Table 2: Personal Insolvencies by Financial Year

Financial Year   2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
                YTD
1 Bankruptcies   5,423 5,885 6,158 14,777 13,810 11,443 5,799
2 Protected Trust Deeds   7,199 8,298 7,509 7,633 9,188 7,980 4,898
3 Total Personal Insolvencies   12,622 14,183 13,667 22,410 22,998 19,423 10,697

Note: LILA route to bankruptcy introduced at start of 2008/09 financial year.
 
 
DEBTOR APPLICATIONS
 
The Accountant in Bankruptcy received 2,447 debtor applications for bankruptcy in the second quarter of 2011/12. At the end of the quarter 86 applications were still being processed. During the quarter 71 applications were rejected as the criteria for bankruptcy had not been demonstrated and 20 were returned due to application errors.
 
 
CASE ADMINISTRATION
 
In Scotland, a trustee is appointed to administer each bankruptcy. A nominated insolvency practitioner may be appointed as trustee or the Accountant in Bankruptcy may be appointed. For the second quarter of 2011/12 the Accountant in Bankruptcy was appointed trustee in 2,183 cases awarded, representing 77 per cent of bankruptcies for the quarter.
 
 
DEBT ARRANGEMENT SCHEME
 
During the quarter there were 856 Debt Payment Programmes approved, an increase of 33 per cent on the previous quarter and an increase of 72 per cent on the same quarter in the previous year. 
 
 
Table 3: Debt Payment Programmes by Quarter
 
Financial Year 2010/11 2011/12 Percentage change 2011/12 Q2 on:
Quarter Q2 Q3 Q4 Q1 Q2 2011/12 Q1 2010/11 Q2
Debt Payment Programmes under the Debt Arrangement Scheme 497 440 478 643 856 33% 72%
 
 

COMPANY LIQUIDATIONS AND RECEIVERSHIPS

Receiverships and liquidations are of those companies which the Court of Sessions has jurisdiction to wind up, and are recorded in the Register of Insolvencies (RoI).
 
The Accountant in Bankruptcy received 361 notices of Scottish registered companies becoming insolvent or entering receivership in the second quarter of 2011/12. This figure includes 14 receiverships, 252 compulsory liquidations, 95 creditors voluntary liquidations and 57 members voluntary liquidations.
 
 
Table 4: Company Liquidations and Receiverships

 
Financial Year 2010/11 2011/12 Percentage change 2010/11 Q2 on:
Quarter Q2 Q3 Q4 Q1 Q2 2011/12 Q1 2010/11 Q2
Receiverships 16 5 13 4 14 250% -13%
Compulsory Liquidations 147 177 199 251 252 0% 71%
Creditors' Voluntary Liquidations 84 83 82 88 95 8% 13%
Total Corporate Insolvencies 247 265 294 343 361 5% 46%
Members' Voluntary Liquidations 33 60 56 63 57 -10% 73%

Notes:
  • The 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. 
  • PTDs are voluntary arrangements, where the debtor passes his 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. 
  • Details of bankruptcies, PTDs, liquidations and receiverships are found on the Register of Insolvencies, which is maintained by the Accountant in Bankruptcy.  
  • The 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 Accountant in Bankruptcy's website.