Credit, Collections & Insolvency News
Latest Accountant in Bankruptcy figures have shown that personal insolvency numbers (bankruptcies and protected trust deeds) in Scotland for Q1 2025-2026 decreased by 5.8% compared with Q1 2024-2025, to a total of 1,935.
The number of personal insolvencies (bankruptcies and protected trust deeds) in Scotland for Q1 2025-2026 increased by 15.8% compared with the previous quarter’s total of 1,671 (January-March 2025).
Tim Cooper, Immediate Past President of restructuring, turnaround and insolvency trade body R3 and Partner at Addleshaw Goddard LLP, said “Turning to personal insolvencies, numbers in Scotland have risen sharply since the start of the year, with a steeper quarterly increase than in England and Wales, which may indicate worsening financial distress for many Scottish households. Both Bankruptcies and Protected Trust Deeds have contributed to this rise, with bankruptcies increasing particularly sharply. This suggests that informal debt solutions are becoming insufficient for some, leading more individuals to turn to bankruptcy as a last resort.
“Compared to the same period last year, however, overall personal insolvency numbers in Scotland have fallen slightly, reflecting a modest drop in both types of process. But the year-on-year change is less marked for bankruptcies, which remain close to 2024 levels – pointing to a longer-term trend of persistent financial strain.
“For many households across Scotland, the financial pressures introduced this spring have hit hard and fast. Although unemployment has recently fallen, bucking the wider UK trend, this has yet to ease the burden felt by many families facing rising living costs. In April, widespread increases across every essential bill dealt a severe blow to budgets already stretched to the limit. These are costs people simply cannot avoid or reduce, leaving many with nowhere left to cut back. There is growing concern that, as people struggle to cover these rising essentials, some may be forced to rely on credit to pay for basics such as food and fuel.
“The removal of the Scottish rent cap in March has added fresh pressure on renters across the country. With landlords now able to raise rents more freely, many tenants are facing increased housing costs just as budgets are tightening. Meanwhile, homeowners continue to struggle with rising mortgage repayments driven by persistently high interest rates, further squeezing household finances.”
