Scottish personal insolvencies fell in Q3

23rd January 2025

Latest data from Accountant in Bankruptcy has found that personal insolvency numbers (bankruptcies and protected trust deeds) in Scotland for Quarter 3 (Q3) 2024-2025 decreased by 11.4% compared with the same quarter in 2023-2024, which totalled at 1,784.

The number of personal insolvencies (bankruptcies and protected trust deeds) in Scotland also decreased by 6% when compared to the previous quarter’s total of 1,897 (July-September 2024).

Richard Bathgate, Chair of insolvency and restructuring trade body R3 in Scotland, and a Restructuring Partner at Johnston Carmichael in Aberdeen, said.
“When it comes to personal insolvencies, the overall year-on-year and quarterly decrease in numbers has been driven by a reduction in Protected Trust Deeds. However, while Bankruptcy numbers have fallen slightly compared to this time last year, they have risen compared to last quarter, which suggests that there has been an increase in the number of people with high levels of debt turning to an insolvency process for help.”

“Despite the fall in personal insolvency levels, it’s clear that people in Scotland are still facing significant financial strain, with many unable to manage the ongoing pressure of rising living costs. Over the winter months, families have faced impossible choices, prioritising rent or mortgage payments over heating their homes, cutting back on festive spending, or adding to existing credit card debt. These struggles are likely to continue into early 2025, with many people still grappling with rising costs of rent, food and fuel, and the uncertainty of how they will make ends meet in the months ahead.”

“The Scottish Budget brings some hope for parents, with plans to scrap the two-child benefit limit in 2026 and expand free childcare for working families. While these measures will ease the pressure on family incomes, they won’t provide immediate relief for those who are already struggling.”

“The new Pension Age Winter Heating Payment is another much-needed lifeline for older people, replacing the Winter Fuel Payment and ensuring pensioners can heat their homes as energy prices continue to rise, bringing some comfort and security through the coldest months.”