Bankruptcies in Scotland up 140 per cent

Today’s annual report from The AiB, Scotland’s insolvency service which supervises the bankruptcy process, shows there were 14,777 bankruptcies compared with 6,158 in 2009-2010.

The AiB recorded the data for the 12 months from April 2008 to March 2009. During this period protected trust deeds (PTDs), a debt solution similar to an individual voluntary arrangement (IVA) available only in Scotland, increased marginally by 1.7 per cent to 7,633 registered PTDs.

Under the AiB’s debt arrangement scheme the number of debt repayment programmes received almost doubled to 939 from 470 in 2006-2007.

Consignation funds, which are owed to creditors at close of bankruptcies and have not yet been paid by the trustee, increased 50 per cent on 2007-2008 to £17.32m. The AiB said it has invested in technology to identify the creditors to repatriate these funds, reducing the need to consign these funds in future.

Scottish families facing severe financial problems

Scottish minister for community safety Fergus Ewing said: “It is no surprise that many families are facing severe financial problems in the current economic climate. However it is imperative that those who need help with debt get appropriate help. In some cases, bankruptcy may offer the best route towards debt relief.

“He added: “This report clearly evidences the AiB’s success in meeting the government’s commitment to achieving sustainability in public service delivery and greater efficiencies where needed most. To achieve such savings to the public purse while at the same time processing more cases and helping more people deal with debt is deserving of praise.

“These achievements are proof of the hard work and application of all the staff at the AIB office – and the strong leadership and drive provided by the AiB, Gillian Thompson, who is now standing down. We in the Scottish Government recognise her outstanding work.

“Separate data from the agency also reveals there were 5,767 personal insolvencies in the three-month period until 31 March this year. This figure represents a drop of eight per cent on the previous quarter and a decrease of four per cent on the same period in the previous year.

Arrange a call with a Bankruptcy Expert

Want help to start Sequestration?

Privacy Policy
Your information will be held in strictest confidence and used to contact you by our internal team only. We will never share your details with any third party without your permission.

Leave a Reply

Your e-mail address will not be published. Required fields are marked *