Scottish insolvency statistics: Quarter 3 2011-12

SCOTTISH INSOLVENCIES IN THE THIRD QUARTER OF 2011-12

Statistics showing insolvencies in the third quarter of financial year ending 31 March 2012 are published today, 25 January 2012, by the Accountant in Bankruptcy. Figures are collated to 31 December 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 4,664 personal insolvencies in Scotland in the third quarter of 2011/12. This figure represents a 13 per cent decrease on the previous quarter and a 2 per cent increase on the same period in the previous year.

In total there were 2,615 awards of bankruptcy, a decrease of 8 per cent on the previous quarter and an increase of 5 per cent on the same period in the previous year.

The number of Protected Trust Deeds recorded was 2,049 in total, a decrease of 19 per cent on the previous quarter and a decrease of 2 per cent on the corresponding quarter of last year.

Chart 1: Insolvencies in Scotland

The individual awards of bankruptcy were broken down as follows:

2,221 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 15 per cent on the same quarter last year. Of these, 1,080 were awarded bankruptcy through LILA
363 awards resulted from petitions to the courts by creditors, a 16 per cent decrease on the previous quarter and a decrease of 26 per cent on the same quarter last year
31 awards were made as a result of petitions to the court by trustees in a trust deed. This represents a 56 per cent decrease on the previous quarter and a 59 per cent decrease on the same quarter last year

Note: The new Certified route into bankruptcy commenced on 15 November 2010. For the third quarter of 2011/12, 786 debtors were awarded bankruptcy who would otherwise have been unable to qualify. This represents a 2 per cent increase on the previous quarter, where 770 awards were made through the Certified route.

Table 1: Personal Insolvencies by Quarter

Financial Year	2010/11		2011/12 (p)			Percentage change 2011/12 Q3 on:
Quarter	Q3	Q4	Q1	Q2	Q3	2011/12 Q2	2010/11 Q3
Awards of Bankruptcy	2,501	2,698	2,947	2,852	2,615	-8%	5%

Breakdown of awards by source
Creditor Petitions	493	456	445	434	363	-16%	-26%
Trust Deed Petitions	75	69	43	70	31	-56%	-59%

Debtor Applications	1,933	2,173	2,459	2,348	2,221	-5%	15%
of which LILA	1,368	1,204	1,305	1,223	1,080	-12%	-21%
of which other	565	969	1,154	1,125	1,141	1%	102%

Protected Trust Deeds	2,090	1,575	2,372	2,526	2,049	-19%	-2%

p - 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
							Year to date
Bankruptcies	5,423	5,885	6,158	14,777	13,810	11,443	8,414
Protected Trust Deeds	7,199	8,298	7,509	7,633	9,188	7,980	6,947
Total Personal Insolvencies	12,622	14,183	13,667	22,410	22,998	19,423	15,361

Note: LILA route to bankruptcy introduced at start of 2008/09 financial year.

DEBTOR APPLICATIONS

The Accountant in Bankruptcy received 2,254 debtor applications for bankruptcy in the third quarter of 2011/12. At the end of the quarter 37 applications were still being processed. During the quarter 63 applications were rejected as the criteria for bankruptcy had not been demonstrated and 19 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 third quarter of 2011/12 the Accountant in Bankruptcy was appointed trustee in 1,988 cases awarded, representing 76 per cent of bankruptcies for the quarter.

DEBT ARRANGEMENT SCHEME

During the quarter there were 878 Debt Payment Programmes approved, an increase of 3 per cent on the previous quarter and an increase of 100 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 Q3 on:

Quarter	Q3	Q4	Q1	Q2	Q3	2011/12 Q2	2010/11 Q3
Debt Payment Programmes under the Debt Arrangement Scheme	440	478	643	856	878	3%	100%

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 280 notices of Scottish registered companies becoming insolvent or entering receivership in the third quarter of 2011/12. This figure includes 8 receiverships, 203 compulsory liquidations, and 69 creditors voluntary liquidations. There were also 55 members voluntary liquidations.

Table 4: Company Liquidations and Receiverships

Financial Year	2010/11		2011/12			Percentage change 2011/12 Q3 on:
Quarter	Q3	Q4	Q1	Q2	Q3	2011/12 Q2	2010/11 Q3
Receiverships	5	13	4	14	8	-43%	60%
Compulsory Liquidations	177	199	251	252	203	-19%	15%
Creditors' Voluntary Liquidations	83	82	88	95	69	-27%	-17%
Total Corporate Insolvencies	265	294	343	361	280	*-22%*	6%
Members' Voluntary Liquidations	60	56	63	57	55	-4%	-8%