Publication - Consultation paper

Bankruptcy and debt advice review: consultation

Published: 5 Nov 2019
Directorate:
Economic Development Directorate
Part of:
Economy
ISBN:
9781839603198

The consultation which forms part of the review into the Bankruptcy and Debt Advice (Scotland) Act 2014.

42 page PDF

530.0 kB

42 page PDF

530.0 kB

Contents
Bankruptcy and debt advice review: consultation
6. Statistical Information

42 page PDF

530.0 kB

6. Statistical Information

Statistical information has been collated on various aspects of the changes introduced by the Bankruptcy and Debt Advice (Scotland) Act 2014. This information has been organised into either a table or graph to best present the statistical data. The following charts/tables present that data:

Chart 1 presents the trends on Low Income Low Asset and Full Administration in comparison to the Minimal Asset Process and Full Administration from 2012-13 to the present. The chart also shows the trends of Moratorium registrations since their introduction in April 2015.

Chart 2 presents a breakdown of the Low Income Low Asset bankruptcies and the Minimal Asset Process bankruptcy from 2012-13 to the present while showing the Full Administration bankruptcies through that same period of time.

Chart 3 presents a comparison between trigger figure breaches using the Common Financial Statement and the Standard Financial Statement as at June 2019.

Table 1 includes a table which presents a breakdown of the debt levels for Minimal Asset Process bankruptcies for each year since their introduction in April 2015. A second table explores in further detail the number of cases which had debt levels of less than £5,000. This table also presents a breakdown of Full Administration bankruptcies by debt levels for each year since the commencement of the Bankruptcy and Debt Advice (Scotland) Act 2014.

Table 2 breaks down the debt levels for Full Administration bankruptcies which have been assessed as having no contribution fixed.

Table 3 presents the number of cases where a contribution was assessed to be paid per year from 2012/13 to present. Prior to April 2015 contributions were fixed by Income Payment Agreements/Orders and post April 2015 contributions were fixed by Debtor Contribution Orders.

Table 4 presents the number of cases, per year since 2016/17, in which the debtor's discharge was deferred.

Table 5 presents the total number of individuals: referred for the financial education modules; the number of those individuals who accessed the modules; and the number who completed the modules from 2015 to present. The last table presents feedback from those individuals on the benefit of completing the financial education modules.

Chart 1 - Insolvency Activity - Pre and Post 1 April 2015 (including moratorium applications post 1 April 2015)

Chart 1 - Insolvency Activity - Pre and Post 1 April 2015 (including moratorium applications post 1 April 2015)

This chart presents the trends on Low Income Low Asset and Full Administration in comparison to the Minimal Asset Process and Full Administration from 2012-13 to the present. The chart also shows the trends of Moratorium registrations since their introduction in April 2015.

Chart 2 - MAP Bankruptcy Activity v LILA Activity

Chart 2 - MAP Bankruptcy Activity v LILA Activity

This chart presents a breakdown of the Low Income Low Asset bankruptcies and the Minimal Asset Process bankruptcy from 2012-13 to the present while showing the Full Administration bankruptcies through that same period of time.

Chart 3 - Updated CFS v SFS Data

Chart 3 - Updated CFS v SFS Data

Table 1 - MAP debt levels

Number of Minimal Asset Process cases by total debt level due to creditors, since 2015-16

2015-16 2016-17 2017-18 2018-19
£1,500 to less than £5,000 168 264 250 275
£5,000 to less than £10,000 556 811 803 904
£10,000 to less than £15,000 431 600 670 814
£15,000 to less than £17,000 126 155 147 189
Total 1,281 1,830 1,870 2,182

Note: Figures presented here may not be consistent with the official, quarterly Scottish Insolvency Statistics publication. These tables are based on data extracted from live databases at a different point in time. The quarterly statistics are the definitive source.

Number of Minimal Asset Process cases by low debt level due to creditors, since 2015-16

2015-16 2016-17 2017-18 2018-19
£1,500 to less than £2,000 4 4 6 7
£2,000 to less than £3,000 23 41 50 47
£3,000 to less than £4,000 60 92 89 77
£4,000 to less than £5,000 81 127 105 144
£5,000+ 1,113 1,566 1,620 1,907
Total 1,281 1,830 1,870 2,182

Note: Figures presented here may not be consistent with the official, quarterly Scottish Insolvency Statistics publication. These tables are based on data extracted from live databases at a different point in time. The quarterly statistics are the definitive source.

Number of Full Administration cases by debt level due to creditors, since 2015-16

2015-16 2016-17 2017-18 2018-19
Less than £17,000 235 286 221 238
£17,000 to less than £20,000 146 190 239 265
£20,000 to less than £25,000 195 238 266 292
£25,000 to less than £30,000 95 158 192 219
£30,000 to less than £40,000 141 210 208 212
£40,000 to less than £50,000 77 122 113 132
£55,000+ 270 340 296 327
Total 1,159 1,544 1,535 1,685

Note: Figures presented here may not be consistent with the official, quarterly Scottish Insolvency Statistics publication. These tables are based on data extracted from live databases at a different point in time. The quarterly statistics are the definitive source.

Table 2 - Full Administration Bankruptcy with no DCO fixed - Debt levels

Number of Full Administration cases with no Debtor Contribution Order set by debt level due to creditors, since 2015-16

Count Percentage
2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19
Less than £17,000 145 143 118 146 61.7% 50.0% 52.7% 60.8%
£17,000 to less than £20,000 71 49 101 137 48.6% 25.8% 42.3% 51.7%
£20,000 to less than £25,000 93 82 109 130 47.7% 34.5% 41.0% 44.5%
£25,000 to less than £30,000 47 53 88 119 49.5% 33.5% 45.8% 54.3%
£30,000 to less than £40,000 89 75 90 113 63.1% 35.7% 43.3% 53.3%
£40,000 to less than £50,000 50 49 53 79 64.9% 40.2% 46.9% 59.8%
£55,000+ 186 197 191 235 68.9% 57.9% 64.5% 71.9%
Total 681 648 750 959 58.8% 42.0% 48.8% 56.8%

Table 3 - Debtor Contribution Levels v IPA Levels

Number of agreed (original) contributions1 by financial year, since 2011-12

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
IPA 2,131 1,762 1,549 1,267 - - - -
IPO 2 2 2 1 - - - -
DCO: Full Administration - - - - 518 591 602 604
DCO: Creditor Petition - - - - 138 169 210 129
All 2,133 1,764 1,551 1,268 518 591 602 604

1 Including contributions which are set at more than £0.

Median monthly contribution1 (including variations) where contribution is greater than £0, since 2011-12

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
IPA 120 100 100 100 - - - -
IPO 110 290 290 200 - - - -
DCO2 - - - - 110 120 130 130
of which: Full Administration - - - - 100 110 120 130
of which: Creditor Petition - - - - 200 220 200 190
All 120 100 100 100 110 120 130 130

1 Figures rounded to nearest £10.
2 Debtor Contribution Order for Creditor Petitions and Full Administration bankruptcies, where contribution is set at more than £0.

Table 4 - Standard Debtor Discharge v. Discharge Deferred

Number of bankruptcy discharges1 by financial year, since 2016-17

2016-17 2017-18 2018-19
Normal discharges 3,094 3,743 3,835
Deferred discharges 71 259 359
Total discharges 3,165 4,002 4,194

Note: Figures presented here may not be consistent with the official quarterly Scottish Insolvency Statistics publication. This table is based on data extracted from live live databases at a different point in time. The quarterly statistics are the definitive source.

Table 5 - Financial Education - Referrals and Qualitative Survey Data

Number of AiB referrals for financial education by type of debtor applications, from 2015-16 to present1

Full Administration and MAP bankruptcies awarded 13,171
of which AiB trustee 11,177
Referred for financial education 1355
Accessed financial education 863
Completed financial education 683
Full Administration bankruptcies awarded 5,978
of which AiB trustee 3,984
Referred for financial education 388
Accessed financial education 296
Completed financial education 282
MAP bankruptcies awarded 7,193
Referred for financial education 967
Accessed financial education 567
Completed financial education 401

1 Note 2015-16 data is partial and the first full year is 2016-17.
Sources: AIB, Money Advice Scotland

Feedback from users who have completed the financial education modules from April 2018 to present (unless stated otherwise)

  • 91% of users rated the module's ease of use as either excellent or very good.
  • 82% of users noted an increase in their ability to plan ahead, save and prepare for unexpected costs by an average of 86% after completing the module.
  • 85% of users noted an increase in their confidence relating to financial matters, after completing the module.
  • Following the module, 97% of users were aware of where to go to access help and advice.
  • Following the module, 96% of users intend to change their approach to finances.

Source: Money Advice Scotland


Contact

Email: AiB_Policy_Development_Enquiries@gov.scot