Credit, Collections & Insolvency News
Latest figures from Accountant in Bankruptcy (AiB) has indicated that personal insolvency numbers (bankruptcies and protected trust deeds) in Scotland for the year ended 31st December 2021 were 16.9% lower than in the year ended 31st December 2020, at 7,543 (2021) against 9,078 (2020).
The number of personal insolvencies (bankruptcies and protected trust deeds) in Scotland rose by 7.5% in Q3 2021/22 compared with Q2 2021/22 but there was no change compared with Q3 2020/21.
Commenting on the figures, Richard Bathgate, Chair of insolvency and restructuring trade body R3 in Scotland and Restructuring Partner at Johnston Carmichael, said “The fall in annual personal insolvencies has been driven by a drop in Bankruptcies and Protected Trust Deeds. This reinforces the point that Government’s support measures have prevented the economic effects of the pandemic from translating into higher levels of personal insolvency by providing protection for those whose personal finances may have been hardest hit.”
“However, the 7.5% Q3 2021/22 quarterly increase in personal insolvencies suggests that people are starting to struggle now those measures have ended and we may see personal insolvencies increasing as 2022 goes on.”
“The end of the furlough scheme in September 2021, coupled with the slow but strong reopening of the economy, has meant that there has been little evidence of an increase in unemployment in 2021.”
“Despite falling unemployment rates, 2021 saw the cost of living skyrocket for families, with rising fuel and energy bills, surging food prices and inflation hitting a near 30-year high, meaning many have been struggling, especially those on the lowest incomes.”
“In addition, National Insurance is set to go up from April 2022, so those who are already finding it tough to make ends meet may find they have even less left over each month.”