Scottish personal insolvencies rise 8.1%

Latest figures from Accountant in Bankruptcy (AiB) have shown that overall, personal insolvency numbers  (bankruptcies and protected trust deeds) in Quarter 1 2022-2023 rose by 8.1%

The number of personal insolvencies (bankruptcies and protected trust deeds) in Scotland for Q1 rose by 7.4% when compared with the previous quarter (January-March 2022).

Commenting on the figures Richard Bathgate, Chair of insolvency and restructuring trade body R3 in Scotland and Restructuring Partner at Johnston Carmichael, said “The personal insolvency figures show that while levels of bankruptcy remained the same when compared to last year, the overall rise in personal insolvency numbers over the last quarter was driven by an 11.8% increase in the number of people entering a Protected Trust Deed (PTD).”

“Although unemployment rates in Scotland remain relatively low, rising inflation and price increases across the board are pushing many families into financial hardship.”

“It is a particularly concerning time for people at the lower end of the income scale as they are less likely to be given inflation-matching pay rises while also being disproportionately affected by soaring costs of groceries, rent, heating and travel costs.”

“As a consequence, more and more people in Scotland are seeking referrals for guidance on using food banks and advice on benefits. With the energy price cap due to increase again in October, coupled with higher energy needs in winter, we will likely see these pressures reflected in the Q2 and Q3 statistics later this year.”