Personal insolvencies in Scotland fall by 8.3%

Latest annual data analysis by the Accountant in Bankruptcy has shown that there were 7,412 personal insolvencies in Scotland in the year 2024-2025. This was a decrease of 8.3% from 2023-2024’s figure of 8,082, and a decrease of 7.4% on 2022-2023’s figure of 8,001.

Quarterly figures (Q4, 2024-25) showed that there were 1,673 personal insolvencies (bankruptcies and PTDs), 213 (11.3%) fewer than in the same quarter in the previous financial year (2023-24 Q4).

A total of 595 bankruptcies were awarded during this quarter – a decrease of 1.7% when compared to the same quarter in 2023-24. PTDs have decreased by 15.8% since 2023-24 Q4, with 1,078 in 2024-25 Q4.

In Q4 of 2024-25, a total of 442 bankruptcy awards were made following applications submitted to AiB, all through the revised fee structure. Of this total, 412 (93.2%) applicants were not required to pay any fee at all.

There were 947 applications for moratoria granted in 2024-25 Q4. This is 23 (2.4%) fewer than the figure of 970 granted in the same quarter in 2023-24. There were 1,221 debt payment programmes (DPPs) under the DAS approved in 2024-25 Q4, compared with 1,234 approved in the same quarter of 2023-24 representing a decrease of 1.1%.

A total of 557 DPPs under the DAS were completed in 2024-25 Q4 – a 15.1% increase on the same quarter in 2023-24. There were 498 DPPs revoked in 2024-25 Q4. This is 110 less than the 388 DPPs revoked in the same quarter of 2023-24, an increase of 15.1%.

Tim Cooper, President of insolvency and restructuring trade body R3 and Partner at Addleshaw Goddard LLP, said “Turning to the personal insolvency numbers, the yearly decrease has been driven by a fall in Protected Trust Deeds, which have fallen to the lowest level since 2015-16. This is likely due to the impact of changes to the process, which took effect in July, introducing tighter eligibility criteria and increased scrutiny around the process.

“At the same time, the number of bankruptcies has remained broadly consistent, and has been higher over the past two years than during 2022–2023. That may reflect a rise in the levels of debt individuals are carrying, compared with the pandemic period.

“2024 was another difficult year for households across Scotland. The high and increasing costs of food, energy, and other bills continued to put a strain on personal finances, leading some to rely on food banks or dipping into savings just to cover basic expenses. Consumer confidence also took a hit, with people feeling increasingly worried about their financial future and cutting back on non-essential spending as a result.

“The cost of housing also remains a major concern. The end of the rent cap in March is expected to add further financial strain, particularly in urban areas where rents have already risen steeply. At the same time, high mortgage rates continue to affect homeowners. While recent interest rate cuts may provide some relief for new borrowers, those with existing loans remain under significant pressure.”