Publication - FOI/EIR release

Number of trust deeds, sequestrations, debt levels, payments and fees: FOI release

Published: 11 Sep 2018

Information request and response under the Freedom of Information (Scotland) Act 2002.

Published:
11 Sep 2018
Number of trust deeds, sequestrations, debt levels, payments and fees: FOI release
FOI reference: FOI/18/02191
Date received: 14 August 2018
Date responded: 10 September 2018
 
Information requested
 
  1. The average payment per month in a trust deed, sequestration and Debt Arrangement Scheme made by a debtor.
  2. Average fee per case in a trust deed and also sequestration.
  3. Total number of trust deeds and sequestrations granted / awarded per trustee/company from the 1st of January 2018 to 14 August 2018.
  4. Average debt level per trust deed and also sequestration case.
  5. How many trust deeds and sequestrations have been granted / awarded with a debt level between £5,000 and £8,000 since January 2017.
Response
 
I enclose a copy of most of the information you requested, detailed below and attached in the Excel spreadsheet format you asked for. Note that while nearly all the information requested is available, for some parts of your request there will be differences in time period requested. Further details below. 
 
1. The average payment per month in a trust deed, sequestration and Debt Arrangement Scheme made by a debtor.

The median payment per month for bankruptcies, protected trust deeds (PTDs) and the Debt Arrangement Scheme (DAS) is shown in the following table.

Table 1: Median monthly payment by statutory debt solution: Scotland, annual financial data, 2017-181, (1) (2)

 

 

 

Statutory debt solution

Median monthly payment (£)

 

 

 

 

Bankruptcy: Full Administration (3)

£120

 

Bankruptcy: Creditor petition (4)

£200

 

Protected trust deed

£150

 

Debt Arrangement Scheme

£170

 

 

 

 

1 Based on actual and scheduled monthly payments only. Bankruptcy information based on relevant Debtor Contribution Order. Protected trust deed information based on latest Form 4 as at 1 June 2018. Debt Arrangement Scheme information based on DASH administrative system.

 

2 Figures rounded to nearest £10.

 

3 Debtor Contribution Order for Full Administration bankruptcies, where contribution is set at more than £0 (602 cases out of 1,534 FA awards in 2017-18).

 

4 Debtor Contribution Order for creditor petition bankruptcies, where contribution is set at more than £0 (210 cases out of 813 for which we have records, 1,231 creditor petitions actually awarded in 2017-18).

 
 

 

 

 

This information is based on payments made in 2017-18 and relate to actual and

scheduled monthly payments only. For bankruptcies the value shown is the Debtor Contribution Order (DCO), where a contribution of more than £0 has been set for Full Administration and creditor petition bankruptcies (DCO for Minimal Asset Process (MAP) is set at £0; 1,875 MAP bankruptcies awarded in 2017-18). Overall, it is estimated that around 80% of all bankruptcies (MAP, FA and creditor petitions) result in a DCO set at £0.

2. Average fee per case in a trust deed and also sequestration.

 The average (mean) fee per case for bankruptcies and PTDs discharged in 2017-18 is shown in the following table. Caution is needed when comparing costs across different statutory solution as different type of costs are included based on information availability and whether VAT is applied.

Table 2: Average cost of administration by statutory debt solution: Scotland, annual financial data, 2017-181

 

 

Statutory debt solution

Average cost of administration (£)

 

 

Bankruptcy: AiB as trustee2

£2,800

Bankruptcy: private sector trustee3

£6,100

Protected trust deed4

£5,900

 

 

 

 

1 Figures rounded to nearest £100.

2 Bankruptcy: AiB as trustee information based on cases discharged in 2017-18. Average cost of administration based on Part 1 and Part 2 fees due and outlays (expenses of realisation are not included). MAP/LILA cases are not included.

3 Bankruptcy: private sector trustee information based on cases discharged in 2017-18. Average cost of administration based on trustee's remuneration only (outlays are not included).

4 Protected trust deed information based on Forms 7 and 11 of PTDs discharged in 2017-18. Average cost of administration equals sum of (i) fixed administration fee, (ii) percentage of assets and contributions realised and (iii) outlays (statutory fees and 3rd party fees).

 

3. Total number of trust deeds and sequestrations granted / awarded per trustee/company from the 1st of January 2018 to 14 August 2018.

 AiB does not have information on the total number of trust deeds granted as records are not retained on trust deeds that are granted but do not go on to be protected.Information is held on the number of PTDs registered by company, shown in table 3 and bankruptcies awarded by company is shown in table 4.  

Table 3: Protected trust deeds registered by company: Scotland, annual financial data, 2017-181

 

 

Company

PTDs registered

 

 

Carrington Dean

2,128

Campbell Wallace Fraser

1,090

Harper McDermott

646

KPMG

637

Pinnacle Insolvency

520

Wylie & Bisset

275

Campbell Dallas

108

Begbies Traynor

105

Payplan Scotland

101

Wilson Andrews

92

Hanover Insolvency

66

Grant Thornton

55

Murray Stewart Fraser

36

William Duncan (Business Recovery)

30

Other

69

 

 

Total PTDs registered

5,958

 

 

1 Displaying companies with 25 or more PTDs registered in 2017-18.

 

Table 4: Bankruptcies awarded (excluding MAP) by company: Scotland, annual financial data, 2017-181

 

 

 

Company

Bankruptcies awarded (exc. MAP)

 

 

 

 

Accountant in Bankruptcy

1,991

 

AMI Financial Solutions

85

 

KPMG

71

 

Grant Thornton UK

63

 

Campbell Dallas

54

 

BDO

48

 

Condies Business Recovery and Insolvency

47

 

Johnston Carmichael

42

 

Wylie & Bisset

41

 

Begbies Traynor

40

 

French Duncan

35

 

MLM Solutions

25

 

Middlebrooks Business Recovery & Advice

25

 

Other

202

 

 

 

 

Total bankruptcies awarded (exc. MAP)

2,769

 

 

 

 

 

1 Displaying companies with 25 or more bankruptcies awarded in 2017-18. Figures include Full Administration and creditor petition bankruptcies. Minimal Asset Process (MAP) bankruptcies (1,875 cases awarded in 2017-18) are excluded as The Accountant must act as trustee.

 
 
 

Information on bankruptcies awards and PTDs registered by trustee is available by financial year with 2017-18 being the latest available. Official quarterly statistics on the number of statutory debt solutions are available here, the latest available data is for April to June 2018 (2018-19 Q1).  

4. Average debt level per trust deed and also sequestration case.

 The median debt level for bankruptcies (Minimal Asset Process and Full Administration) and protected trust deeds is shown in the following table. Information is based on bankruptcies awarded and PTDs registered in 2017-18 from debtor application (bankruptcies) and Form 3 (PTD) forms respectively.

Table 5: Median debt level by statutory debt solution: Scotland, annual financial data, 2017-181, 2

 

 

Statutory debt solution

Median total debt due to creditors (£)

 

 

Bankruptcy (MAP and FA)

£13,700

Minimal Asset Process

£9,400

Full Administration

£26,300

 

 

Protected trust deed

£14,500

 

 

 

1 Bankruptcy information based on debtor application forms for bankruptcy awards in 2017-18. AiB does not have readily available information on debt levels in creditor petitions. PTD information based on Form 3 for PTDs registered in 2017-18.

2 Figures rounded to nearest £100.

5. How many trust deeds and sequestrations have been granted / awarded with a debt level between £5,000 and £8,000 since January 2017.

 The number of bankruptcies (Minimal Asset Process and Full Administration) and PTDs registered with total debt due to creditors between £5,000 and £8,000 is shown in the following table. Information is based on bankruptcies awarded and PTDs registered in 2017-18 from debtor application and Form 3 forms respectively with 2017-18 being the latest financial year available.

Table 6: Bankruptcies awarded and PTDs registered in 2017-18 with debt level between £5,000 and £8,000: Scotland, annual financial data, 2017-181

 

 

Statutory debt solution

Number with total debt due to creditors between £5,000 and £8,000

 

 

Bankruptcy (MAP and FA)

491

Minimal Asset Process

466

Full Administration

25

 

 

Protected trust deed

974

 

 

 

1 Bankruptcy information based on debtor application form for bankruptcy awards in 2017-18. AiB does not have readily available information on debt levels in creditor petitions. PTD information based on Form 3 for PTDs registered in 2017-18.

 

  

About FOI
The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses
 

Contact

Please quote the FOI reference
Central Enquiry Unit 
Email: ceu@gov.scot
Phone: 0300 244 4000 
The Scottish Government 
St Andrew's House 
Regent Road 
Edinburgh 
EH1 3DG