In September 2019, the then Minister for Business, Fair Work and Skills, Jamie Hepburn announced a wide-ranging review of Scotland’s statutory debt solutions.
This process is now underway and three expert working groups have been established to consider a range of issues and bring forward recommendations for Ministerial consideration during the next Parliamentary session.
This review process and the working group deliberations will also draw on a wide range of statistics. Accountant in Bankruptcy (AiB) has therefore prepared and published this ad-hoc statistics release today (Wednesday 25 August). This release will include analysis of the repayment periods on statutory debt solutions:
- Number of statutory debt solutions by grouped monthly contribution level
- Number of bankruptcy and protected trust deeds (PTDs) concluded in the last three financial years (2018-19 to 2020-21) by total administration cost and contribution level
- Number of bankruptcy and PTDs by whether the four-year repayment period is completed or not
- Number of referrals to financial education
- Number of Debt Payment Programmes by outcome and length of survival.
The purpose of this ad-hoc statistics release is to assist all working groups in order to prepare a detailed assessment on any recommendations and the wider impact on all statutory debt solutions.
Unless stated otherwise, this release is not part of the regular Scottish Statutory Debt Solutions Statistics releases.
These statistics are used internally by AiB and the Scottish Government, and during stakeholder engagement to inform policy development. The Code of Practice for Statistics says that statistics producers must provide free and equal access to regular and ad-hoc official statistics. Therefore, AiB is bringing forward this ad-hoc statistics release.
The main findings for this ad-hoc statistics release are as follows:
- For all Debt Payment Programmes (DPPs) approved in between 2015-16 and 2020-21, around 10% were completed. In contrast, almost 20% of those DPPs were revoked. The remaining 70% is still live as at 31 March 2021.
- The five-year survival rate for all DPPs approved in 2015-16 and that either remained live or became completed successfully in 2020-21 was 61%.
- For all bankruptcy cases (excluding Minimal Asset Process (MAP) and recalls) concluded in between 2018-19 and 2020-21, there were 496 cases where ordinary creditor dividends were paid in full. This represents around 6% of all cases concluded.
- For all protected trust deeds (PTDs) concluded in between 2018-19 and 2020-21, there were 395 cases where ordinary creditor dividends were paid in full. This represents around 3% of all cases concluded.
- Around 71% of bankruptcy cases (excluding MAP and recalls) awarded in between 2018-19 and 2020-21 either have zero or no Debtor Contribution Order (DCO) set. Moreover, 4% of those cases have a monthly DCO set at less than £50.
- The majority (51%) of trust deeds protected in between 2018-19 and 2020-21 is expected to repay monthly contribution set at between £100 and less than £150.
- Of 4,999 bankruptcy cases concluded in between 2018-19 and 2020-21 and with a DCO of any value set, there were 490 (almost 10%) in which the original DCO and all variations (if exist) set at more than £0 prior to the trustee discharge.
- Similarly, almost 11% of those 4,999 cases did have their DCO quashed prior to the trustee discharge.
- Of 14,988 PTDs concluded in between 2018-19 and 2020-21 with Form 7 only, there were 11,256 (75%) in which the debtor is discharged.
- Almost 61% of 14,988 PTDs concluded did pay the final total contribution value as expected in their Form 3 or more.
- There were 139 PTDs (Form 7 only) concluded in between 2018-19 and 2020-21 with only assets realised. This represents around 1% of 14,988 Forms 7.
- There were 6,301 Forms 7 concluded with only contributions realised, which represents around 42% of all Forms 7. For almost 55% of 6,301 Forms 7, the total administration fee was less than £5,000.
- In contrast, there were 8,133 Forms 7 concluded with both assets and contributions realised. For 18% of 8,133 Forms 7, the total administration fee was less than £5,000 for each case.
For any enquiries in related to this ad-hoc statistics release, please contact Ken O’Neill: firstname.lastname@example.org.
For any general enquires in relation to the Stage 2 of the general review, please contact email@example.com.