Accountant in Bankruptcy (AiB) today released official statistics reporting personal and company insolvencies in Scotland for the third quarter (October to December 2018) of 2018-19.
Scottish Insolvency Statistics for October to December 2018 (2018-19 Q3)
There were 3,198 personal insolvencies (bankruptcies and protected trust deeds (PTDs)) in Scotland in 2018-19 Q3, compared with 2,707 in 2017-18 Q3, an increase of 18%.
There were 1,217 bankruptcies awarded during this quarter, a 9.9% increase on the same quarter in 2017-18. PTDs increased by 24% to 1,981 over the same period.
There were 668 DPPs approved under DAS compared with 570 in the same quarter of the previous year.
A total of £9.1 million was repaid through DAS during this quarter, compared with £9.5 million in 2017-18 Q3.
The number of Scottish registered companies becoming insolvent or entering receivership increased in the third quarter of 2018-19, with 209 companies becoming insolvent compared with 201 in 2017-18 Q3. There were 122 members’ voluntary liquidations (solvent liquidations), down on the 129 in 2017-18 Q3.
The figures released today were produced in accordance with the professional standards set out in the Code of Practice for Official Statistics.
- A full statement of Scottish insolvency statistics for the third quarter of 2018-19 is available – https://www.aib.gov.uk/about-aib/statistics-data/quarterly-reports
- Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland can be accessed at: http://www.scotland.gov.uk/Topics/Statistics/About (link is external).
- 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 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 debt payment programmes, is available here.
- Details of bankruptcies, PTDs, liquidations and receiverships are found on the register of insolvencies, which is maintained by Accountant in Bankruptcy and can be found at https://roi.aib.gov.uk/roi
- 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’s website at www.aib.gov.uk