Credit, Collections & Insolvency News
Scottish personal insolvencies figures continued to decline in March 2021 according to the latest figures released by Accountant in Bankruptcy (AIB), Scotland’s Insolvency Service which administers company liquidations and receiverships in Scotland. The number of personal insolvencies numbers declined.
The figures showed that there were 7,291 personal insolvencies in the 12 months to April 2021 (inclusive), 5,998 (45.1%) fewer than in the previous 12 months. Bankruptcies decreased by 46% in the 12 months to April 2021 when compared with the previous 12 months whilst Protected Trust Deeds (PTDs) decreased by 44.7% over the same period.
There were 3,704 approved DPPs under the Debt Arrangement Scheme in the 12 months to April 2021 compared with 3,264 for the previous 12 months, an increase of 13.5%.
The introduction of new provisions on the statutory moratorium is part of emergency measures brought in by the Coronavirus (Scotland) Act 2020: As of 30 April 2021, 2,212 applications for moratoria had been granted under the new powers. There were 235 applications for moratoria granted in April 2021 under the new legislation, 172 more than in April 2020.
There were 2,152 applications for moratoria granted in the 12 months to April 2021 (inclusive) compared with 1,060 for the previous 12 months.
In the period between 27 May 2020 and 30th April 2021 a total of 2,150 bankruptcy awards were made following applications submitted to AiB, all through the revised fee structure. Of this total, 1,670 (77.7%) applicants were not required to pay any fee at all.