Credit, Collections & Insolvency News
The number of personal insolvencies (bankruptcies and protected trust deeds) in Scotland rose by 12.3% to 1,884 in April-June 2021compared with January-March 2021’s figures of 1,677, and was 9.6% lower than in April-June 2020 according to latest Accountant in Bankruptcy (AiB) figures.
A total of 586 bankruptcies were awarded during this quarter – a 61.4% increase on the same quarter in 2020-21. PTDs decreased by 24.6% to 1,298 over the same period.
There were 756 applications for moratoria granted in 2021-22 Q1. This is 566 more than the figure granted in the same quarter in 2020-21.
There were 1,210 debt payment programmes (DPPs) under the Debt Arrangement Scheme (DAS) approved in 2021-22 Q1, compared with 841 approved in the same quarter of 2020-21, an increase of 43.9%.
Commenting on the figures, Iain Fraser, Chair of insolvency and restructuring trade body R3’s Scottish Technical Committee, said “On the personal insolvency side, the increase shown in the figures published today can be attributed to a rise in both protected trust deeds and bankruptcies.”
“Although people are more optimistic about the future, there is still a long way to go before we return to pre-pandemic levels of positivity, and, while confidence is growing, people are more cautious about spending money than they were a year ago.”
“There’s no doubt that the support measures have been a valuable safety net for many people, as well as a great number of businesses, but they haven’t been able to help everyone. Some households have managed to save and reduce their debts during the pandemic, while others, usually those on lower incomes, have faced financial challenges.”
