Personal insolvency levels still in decline, AiB reports

Personal insolvencies in Scotland continued to decline in 2015-16, according to figures released by the Accountant in Bankruptcy (AiB).

Taking bankruptcies and protected trust deeds (PTDs) together, the overall total in the fourth quarter of 2015-16 was 13.3% lower than the same period of the previous year, and is now at its lowest level in 14 years.

Bankruptcies increased on the previous quarter to 997, but the number of awards is 42.7% down on the same quarter of the previous year, and the annual total for 2015-16 has fallen by 44.9% to the lowest recorded in 11 years.

The number of PTDs decreased quarter on quarter to 1,235, but the total of 4,705 for 2015-16 was 6.0% up on the previous financial year.

The number of people entering the statutory debt management solution, the Debt Arrangement Scheme (DAS), increased to 538 in the fourth quarter of 2015-16, the second consecutive increase. The amount repaid through DAS increased in 2015-16 by 3.2% on the previous year to £38m.

Overall, AiB reports that the demand for statutory debt solutions in Scotland continues to decline, and at an increasing rate. The combined number of bankruptcies awarded, PTDs registered and DAS applications totalled 10,454 in 2015-16, 31.8% lower than the previous year.

Scottish registered companies becoming insolvent or entering receivership totalled 860 in 2015-16, 11 more than in 2014-15. Solvent liquidations increased to 358 in the quarter, member voluntary liquidations jumped by 63.3% over the year compared with 2014-15.

Click here to view the full report.