Personal Insolvency now at 14 year low.

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Scotland’s personal insolvencInsolvency Fallenies number has fallen to its lowest level in more than 14 years.

During the three months leading up to the end of June, just 1606 personal insolvencies were recorded, this is down 38.5% on the previous quarter and almost down 46% on the same quarter a year previous. This is the lowest figure recorded for personal insolvencies since the final quarter of 2000/2001.

Personal insolvencies comprise of bankruptcies and Protected Trust Deeds. In this quarter bankruptcies fell to 757, which is down 56.5% on the previous quarter and almost 57% on the same quarter of the previous year. The number of businesses entering into dissolution remained static, with 197 notices of Scottish registered companies becoming insolvent or entering receivership in the first quarter of 2015/16. This number remained the same as the last quarter, although this number is just over 21% lower than the same quarter of last year. The figures, reported by an accountant in bankruptcy, cover the first months since the legislation governing bankruptcy was amended. Changes to the law include mandatory money advice for people seeking access to statutory debt relief solutions.

The business minister Fergus Ewing stated: “The number of people falling into financial difficulty and having to seek debt relief has been falling steadily for some time now – this is a welcome sign the Scottish economy is on the road to recovery. The Bankruptcy and Debt Advice (Scotland) Act was developed following years of consultation with experts across the financial advice community and from studying how other nations deal with issues of personal debt. We have been working with our stakeholders to streamline these new processes. As an example, we have amended the guidance for applicants whose sole income is derived from benefits to make it easier for these individuals to apply.”

Jane Peters, of CreditSure, said: “Corporate insolvencies in the second quarter of 2015 are static and this is welcome as further proof that the economic recovery is well under way.”

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