Personal insolvencies stabilised after a long-term decline

An Official Statistics Publication for Scotland.

Accountant in Bankruptcy (AiB) today released official statistics reporting personal and company insolvencies in Scotland for the first quarter of 2016-17. The figures show that personal insolvencies, which include both bankruptcies and protected trust deeds (PTDs), totalled 2,405.

There were 1,144 bankruptcies awarded during this quarter. This represents a 14.7 per cent increase on the previous quarter and a 51.1 per cent increase as compared to the first quarter of 2015-16. However, the activity levels in the first quarter of 2015-16 were particularly low due to the legislative and operational changes introduced through Bankruptcy and Debt Advice (Scotland) Act 2014 (BADA(S)) on 1 April 2015. A more realistic comparison is obtained by looking at previous years’ activity. The bankruptcies awarded in this quarter are 41.7 per cent lower than the same quarter in 2013-14 and 34.9 per cent lower than in 2014-15.

The number of PTDs remains fairly stable this quarter. The number of PTDs rose 2.1 per cent from the previous quarter to 1,261.

There were 510 debt payment programmes (DPPs) approved under DAS, 28 DPPs less than the previous quarter. The quarterly number of approved DAS DPPs has remained relatively constant at or around 500 applications approved mark since the start of 2015-16. A total of £9.3 million was repaid through DAS during this quarter. This is 1.5 per cent lower than the previous quarter.

The combined number of bankruptcies awarded, PTDs recorded and DAS DPPs approved has remained stable for the last three quarters. This quarter's figures are 36.5 per cent higher than the same quarter last year.

The number of Scottish registered companies becoming insolvent or entering receivership has increased in the first quarter of 2016-17, with 258 companies becoming insolvent. This is 12.2 per cent higher than the previous quarter. The number of members’ voluntary liquidations (solvent liquidations) decreased from 358 to 215.

The figures released today were produced by professionally independent statistical staff in accordance with the professional standards set out in the Code of Practice for Official Statistics.

Notes to editors

• A full statement of Scottish insolvency statistics for the fourth quarter of 2015-16 is available –
• Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland can be accessed at:
• 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 at
• 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
• 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


Gavin Cameron , Communications Manager, Accountant in Bankruptcy

Telephone: 0300 200 2636 / 07976 183010


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