The Accountant in Bankruptcy (AIB) has released statistics which report on the number of both company and personal insolvencies as well as statutory debt solutions in Scotland. These statistics cover the first quarter April to June 2025 in the financial year 2025-26 and are compared to the same quarter in 2024-25.

The key takeaways from the AIB review are as follows:

• Scottish registered companies becoming insolvent or entering into receivership increased by 17.3%.
• Personal insolvencies (including Bankruptcies and Protected Trust Deeds) decreased by 5.8%.
• Bankruptcies increased by 4.7%.
• Protected Trust Deeds decreased by 11.3%.
• Applications for moratoria (a temporary prohibition of enforcement of debt) increased by 16.6%.
• Debt payment programme (DPPs) approvals under DAS increased by 1.7%.
• DPPs under DAS completing increased by 11.5%.
• DPPs under DAS being revoked increased by 42.1%.

The trends show an acceleration of corporate insolvencies taking place in Scotland, the likes of which have not been seen in the last 2 years. Likely down to the pressures of incessant inflation, lower consumer confidence and higher operating costs, many firms are having to make the hard choice on whether or not to continue operating.

Whilst personal insolvencies are starting to take a dip, many of those facing difficulties with their debt appear to be making use of the AIB’s moratorium application process rather than more long term debt solutions such as Trust Deeds and DPPs, suggesting short term debt protections are having a significant impact.

Interestingly whilst there was a small increase in DPPs under DAS being approved, there was an alarming increase in revocations suggesting more applicants are failing to comply with the terms of their DAS.

More information on the Scottish Statutory Debt Solutions Statistics from April to June 2025 (2025-26 Quarter 1) can be found here https://www.aib.gov.uk/publications/scottish-statutory-debt-solutions-statistics-april-to-june-2025-2025-26-quarter-1

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The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any information contained in this blog, please seek a solicitor’s advice from Gilson Gray.