Credit, collections & insolvency news
Personal insolvency numbers (bankruptcies and protected trust deeds) in Scotland for Q1 2024-2025 decreased by 2.1% compared with Q1 2023-2024, to a total of 2,056 according to latest accountant in Bankrupcy figures.
The number of personal insolvencies (bankruptcies and protected trust deeds) increased by 9% compared to the previous quarter’s total of 1,886 (January-March 2024).
Richard Bathgate, Scotland Chair of R3, the UK’s insolvency and restructuring trade body, said:“Turning to personal insolvency, the slight yearly fall has been driven by a reduction in Protected Trust Deeds. While personal insolvencies have decreased compared to pre-pandemic levels, it’s important to be cautious of these statistics, as this reduction may be partly due to a backlog, where the number of people seeking debt advice exceeds the capacity of available support.
“Meanwhile, bankruptcy numbers have reached their highest level since Q2 2020. This suggests that more people in Scotland are grappling with substantial levels of debt, and the combination of these debts and rising living costs has left them with little time to reach an agreement with their creditors.
“Despite a drop in inflation rates, costs continue to rise, albeit at a slower pace, which is keeping household budgets under pressure. The focus for many families across Scotland remains on paying for the essentials like rent, mortgage payments, and bills, and continuing to cut back discretionary spending on things like eating out and buying new clothes.
“The lifting of the 3% rent cap at the beginning of this quarter has also resulted in significant increases in rental costs across Scotland, especially in major cities such as Edinburgh and Glasgow. While the immediate impact on renters is clear, it will take some time before we can understand how this change will affect the number of people seeking personal insolvency advice.”
