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SCOTTISH INSOLVENCIES RISE TO OVER 5000 | |||||
| The following appeared in ‘Scottish Legal News’ on 21st July. Personal insolvencies in Scotland increased to more than 5,000 during the first quarter of 2010/11, according to official figures from the Accountant in Bankruptcy (AiB). The figure of 5,378 represents a four per cent rise on the previous quarter, but a decrease of 15 per cent on the same period in the previous year. Personal insolvency data consists of both bankruptcy and protected trust deed (PTD) figures. The latest official Scottish figures released today show that there were 3,139 awards of bankruptcy, showing no change on the previous quarter and a decrease of 16 per cent on the same period in the previous year. Minister for Community Safety, Fergus Ewing said: "I am pleased to see that the total number of personal insolvencies, which includes both bankruptcies and protected trust deeds, is significantly less compared to the same quarter of last year and that the number of bankruptcies remains similar to figures of the previous quarter. "The Scottish Government remains committed to helping those struggling to deal with debt and work is ongoing to bring the Home Owner and Debtor Protection (Scotland) Act 2010 into force later this year. "The Act will offer greater protection for homeowners faced with repossession and allow access to bankruptcy for a wider group of people who need this form of debt relief." He added: "Encouragingly, Debt Payment Programmes (DPPs) under the Debt Arrangement Scheme, which allow people to repay their debt over an extended period of time, have increased by 60 per cent compared to the same quarter of last year. "This rise, along with lower numbers in personal bankruptcies is a possible indication that people are seeking advice at an early stage and choosing a debt solution appropriate to their circumstances. "I also note that the number of businesses entering liquidation or receivership has increased when compared to both the previous quarter and last year´s corresponding figures. We will monitor these figures closely." Statistics in brief: • 5,378 personal insolvencies in Scotland, for the first quarter of 2010/11; an increase of 4 per cent on the previous quarter and a decrease of 15 per cent on the same period in the previous year • 3,139 were awards of bankruptcy; showing no change on the previous quarter and a decrease of 16 per cent on the same period in the previous year • 2,239 protected trust deeds (PTDs) were recorded; up 10 per cent on the previous quarter and a decrease of 13 per cent on the corresponding quarter of last year • 2,500 awards were made as a result of debtor applications to AiB; an increase of 1 per cent on the previous quarter and a decrease of 17 per cent on the same quarter last year. Of these, 1,897 were awarded bankruptcy through LILA • 562 awards resulted from petitions to the courts by creditors; a 1 per cent decrease on the previous quarter and a decrease of 9 per cent on the same quarter last year • 77 awards were made as a result of petitions to the court by trustees in a trust deed; a 13 per cent decrease on the previous quarter and a 21 per cent decrease on the same quarter last year • 495 Debt Payment Programmes approved under the Debt Arrangement Scheme (DAS) in this quarter; an increase of 19 per cent on the previous quarter and an increase of 60 per cent on the same quarter in the previous year. ------------------------------------------------------------------------------------------------------ JUDGMENT DEBTS “BAD BUT A LITTLE BETTER” The following from Registry Trust also makes for interesting reading. Debt judgments* (decrees) to the total value of £4.9 millions were issued against businesses in Scotland in the first half of 2010 according to information released today (July 21) by Registry Trust, the non-profit organisation which collects and makes available decree information in Scotland and other jurisdictions in the British Isles. Registry Trust’s statistics show a 16 percent fall from the £5.8m of debt judgments issued against business in the first half of 2009. While the figure is lower than for the first half of 2009, it still dwarves those seen in the first half of the preceding years of £1.3m (2006), £1.3m (2007) and £2.4m (2008). Businesses in Scotland faced 33 percent fewer debt judgments over the first 6 months of 2010, a total of 3,161. The average amount of each judgment issued rose 8.5 percent to £1,533. CONSUMER DECREES FALL 32 PERCENT IN FIRST HALF OF 2010 The total value of debt decrees issued against consumers (in the form of small claims and summary decrees ) in Scotland fell by 32 percent in the first half of 2010. Last year’s total for the period of £22.6m fell to £15.3m, almost the same value seen in the first half of 2008. A drop of 27 percent in the number of judgments issued to 12,034 explains most of the fall in value, with the average value of each individual judgment falling by only 7 percent. A record number of 4,442 searches of the Register were performed in Scotland in the first half of 2010. This is a 71% increase on the 2009 HY1 total of 2,598. Announcing the statistics, Registry Trust chairman, Malcolm Hurlston said: “2009 was a particularly tough year for Scotland and the whole of the United Kingdom. 2010 to date is still bad, but a little better especially for Scottish businesses. “This encouraging set of statistics means that Scotland may be able to see light at the end of the tunnel, but it is not yet time to breathe a sigh of relief.” “Many businesses and individuals are still struggling with liquidity. In so far as past performance is an indication of future results, judgment records can provide valuable information.” “Particularly encouraging is the rapid increase in the popularity of our online search facility www.trustonline.org.uk. Consumers are now seeing that it makes sense to check out firms and others to check the tale of the decree before transacting.” Questions? Should you have any questions or comments then please don´t hesitate to contact me using the details below. Stephen Cowan Managing Partner Yuill + Kyle Debt recovery + Credit control Lawyers, Scotland scowan@yuill-kyle.co.uk | |||||
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