Statistics from the Accountant in Bankruptcy (AiB) for the first quarter of 2018-19 show that total personal insolvencies, which includes both bankruptcies and protected trust deeds (PTDs), rose by 11.8 per cent, relative to the first quarter of 2017-18. 

There was a marked increase in PTDs, with 1,972 in the first quarter of 2018-19, up from 1,547 in the same quarter last year.

The Scottish government’s debt arrangement scheme (DAS), which allows people to repay their debts without facing insolvency or further action being taken against them, also showed a rise of 8.5 per cent, compared with the same quarter a year ago.

There were 648 debt payment programmes approved under DAS in the first quarter of 2018-19, compared with 597 in the same quarter for 2017-18. A total of £9.5 million was repaid through the DAS scheme in the quarter.

Commenting on the latest figures, AiB chief executive, Richard Dennis, said:

“While the number of individuals entering insolvency continues to be very much lower than 10 years ago, these figures clearly illustrate personal insolvencies remain on an upward trend from the first quarter of 2015-16.

“With consumer borrowing now surpassing the levels seen before the 2008 crash, we are leading an ambitious programme of reform to make sure the debt solutions offered by the Scottish Government remain relevant in today’s society."

The number of Scottish corporate insolvencies also rose during the quarter from the same period a year ago. There were 245 total corporate insolvencies during the quarter, up from the 200 recorded in the first quarter of 2017-18, composed of three receiverships, 145 compulsory liquidations and 97 creditors’ voluntary liquidations.

Read more: Gov.scot