Scottish personal insolvencies increase by 1%

Latest figures from Accountant in Bankruptcy showed that there were 8,085 Scottish personal insolvencies in the year 2023-2024. This was an increase of 1% on 2022-2023’s figure of 8,001, an increase of 4% on 2021-2022’s figure of 7,769 and a decrease of 40% compared to pre-pandemic levels in 2019-2020 (13,491).

Commenting on the annual Scottish Insolvency Statistics 2023-24, Richard Bathgate, Chair of insolvency and restructuring trade body R3 in Scotland and Restructuring Partner at Johnston Carmichael, said  “The slight yearly rise in personal insolvencies has been driven by an increase in both bankruptcies and statutory moratoriums, while protected trust deed numbers fell slightly over the same period.

“Bankruptcies were lower in Q4 2023-2024 than in Q3 and Q1, while protected trust deeds fell to the lowest total of the financial year in Q4 – a sign that Scotland’s economy may be starting to turn a corner this year. But with the last year’s temporary rent caps and moratorium on evictions now lifted, we could see personal insolvencies take another hit in the coming year.

“Today’s figures are a clear sign that the cost-of-living crisis is far from over for many people in Scotland. Households are still feeling the pinch from high energy costs and persistent food inflation, with household essentials costing significantly more than they did two years ago. This has forced many families to cut back on their spending or dip into savings just to make ends meet.

“Despite recent reports suggesting a slowdown in price increases, real terms growth in wages has been sluggish so it will take some time for people in Scotland to truly feel a sense of relief. This is especially concerning for lower-income households, where the impact has been more severe. For these families, the road to financial recovery may be much longer and more challenging.”