Credit, Collections & Insolvency News
Latest figures from Accountant in Bankruptcy (AiB) have shown that Scottish personal insolvencies fell by 41.3% that in the previous 12 months.
The figures showed that were 7,967 personal insolvencies in the 12 months to February 2021 (inclusive), 5,608 fewer than in the previous 12 months.
Bankruptcies decreased by 48.5% in the 12 months to February 2021 when compared with the previous 12 months. Whilst PTDs decreased by 37.4% over the same period.
There were 3,585 approved DPPs under the Debt Arrangement Scheme in the 12 months to February 2021 compared with 3,033 for the previous 12 months, an increase of 18.2%.
The introduction of new provisions on the statutory moratorium and the revised fee structures in place for accessing bankruptcy are part of emergency measures brought in by both the Coronavirus (Scotland) Act 2020 and the Coronavirus (Scotland) (No.2) Act 2020.
As of 28th February 2021, 1,685 applications for moratoria had been granted under the new powers. There were 256 applications for moratoria granted in February 2021 under the new legislation, 135 more than in February 2020 under the previous provisions.
In the period between 27 May 2020 and 28 February 2021 a total of 1,740 bankruptcy awards were made following applications submitted to AiB, all of which benefitted from the system of reduced application fees. Of this total, 1,357 (78.0%) applicants were not required to pay any fee at all.