Scots personal insolvencies at lowest level for 10 years

Personal insolvencies in Scotland fell to their lowest level in 10 years in the final quarter of 2014-15, according to new figures from the Accountant in Bankruptcy.

Company failures were also down, to a seven-year low. 

In the final quarter of 2014-15, a total of 2,569 personal insolvencies –which includes both bankruptcies and protected trust deeds – were recorded, 2.4% down on the previous quarter and the lowest combined total since the fourth quarter of 2004-05. 

The annual total number of personal insolvencies has fallen 19.1% to 11,161 compared to a year ago. The longer term trend shows total personal insolvencies have declined every year for the past three years – and at an increasing rate. 

Over the year, 4,147 debt payment programmes were approved under the Debt Arrangement Scheme (DAS), 9.4% fewer than the annual total for 2013-14. However, the amount of money repaid through DAS was up by 22.5%, or £6.8m, to £36.8m over the year.

The number of Scottish-registered companies becoming insolvent was down 8.2% on the annual total for 2013-14 to 849 liquidations and receiverships. The figure of 197 for the fourth quarter of 2014-15 is 19.3% lower than the same quarter a year ago.

Welcoming the latest figures, Business Minister Fergus Ewing said: "These are extremely encouraging numbers which illustrate that Scotland’s recovery continues to gather pace.

"We are now looking at levels of sequestrations and companies going to the wall that haven’t been seen since before the global recession.

"Nevertheless, this Government remains committed to doing all it can to ensure fewer and fewer people experience the misery associated with problem debt."

Under the Bankruptcy and Debt Advice (Scotland) Act 2014, which came into force this month, people seeking to go through statutory debt relief procedures such as sequestration must go through mandatory money advice.

Click here for the full statistical report for the fourth quarter of 2014-15.