Scottish Personal insolvencies remain static

26th October 2023

Latest figures from Accountant in Bankruptcy (AiB) have indicated that personal insolvency numbers in Scotland saw no real change in Quarter 2 (Q2) compared to a year ago but fell by 40.2% compared to pre-pandemic levels in 2019.

Overall, personal insolvency numbers (bankruptcies and protected trust deeds) in Scotland for Q2  saw no real change, a decrease of just 0.05% which equates to a single case, compared with Q2 2022-2023, to a total of 2,074.

Personal insolvency numbers in Scotland also decreased by 40.2% when compared to pre-pandemic levels in 2019.

The number of personal insolvencies (bankruptcies and protected trust deeds) in Scotland for decreased by 1.3% compared to the previous quarter’s total of 2,102 (April-June 2023).

Iain Fraser, Chair of the Scottish Technical Committee at R3, the UK’s insolvency and restructuring trade body, said “Personal insolvency numbers have held steady compared to Q2 last year, indicating that people in Scotland are still facing financial difficulties due to the high cost of living.”

“Personal insolvency levels have fallen since before the pandemic, driven by a fall in both bankruptcies and protected trust deeds, so while there has been some improvement since the pandemic’s peak, the economic impact remains considerable.”

“Inflation and rising interest rates continue to bite Scottish households. High costs across the board, from mortgage prices to energy bills mean making it through the month without relying on forms of credit is getting harder and harder, while the cost of food remains a major concern for many.”

“As we move into Q3, there’s a growing worry that more families will face the difficult choice between heating their homes and putting food on the table – a position no one wants to be in.”

“For those renting, there is some relief as the rent cap has been extended for an extra six months. This news comes as a welcome respite for those already struggling with high everyday costs and will hopefully ease some concerns about having to manage the added burden of increased rent on top of already stretched budgets.”

“The recently announced freeze on council tax will also provide some financial relief, but as this comes into effect next year, the impact of these measures might not be felt for another six months or more.”

“If you’re struggling with your finances, my message is simple: seek advice as early as you possibly can. Money worries are one of the hardest things you can go through – whether you’re a business owner or an individual – but acting early on your concerns will not only give you better peace of mind, but more potential options and more time to take a decision on how you move forward than if you’d waited for the problems to mount.”