Ian is an expert in the Debt Arrangement Scheme and Business Debt Arrangement Scheme, assisting individuals, sole traders and partnerships.
He also advises on personal debt solutions recommending the best option to resolve problem debt issues.
Scottish Insolvency Statistics 2024–25: Debt Solutions Show Shifting Trends
Scottish debt figures 2024-25
Scotland’s latest insolvency figures, from the Accountant in Bankruptcy (AiB), reveal a mixed picture of financial pressures and shifting preferences in how individuals manage problem debt.
In 2024–25, there were 7,403 personal insolvencies, a drop of 8.4% compared to the previous year. This decline follows an increase from the previous year and suggests fewer people may be resorting to insolvency as a way of dealing with unsustainable debts.
Breaking this down, bankruptcies remained broadly steady at 2,483 cases, just 0.5% lower than in 2023–24. However, Protected Trust Deeds (PTDs) – historically the most common debt solution – fell sharply by 11.9%, with only 4,920 awarded.
At the same time, an alternative to insolvency, the Debt Arrangement Scheme (DAS), is gaining traction. It allows debtors to repay what they owe over time without writing off balances. The AiB approved 5,292 Debt Payment Programmes (DPPs) in 2024–25 – slightly up from the previous year. Crucially, repayments under DAS rose significantly, with £62 million returned to creditors, compared with £50 million the year before. This suggests greater sustainability in repayment plans and growing creditor confidence in the scheme.
Debt Payment Programme most popular solution
For the first time since DAS was introduced, DPPs have overtaken PTDs as Scotland’s most popular debt solution. This milestone reflects both changing debtor behaviour and policy efforts to promote repayment over debt write-off where possible.
Meanwhile, demand for ‘breathing space’ remains high. 3,610 moratoria applications were granted, up 3.9% on 2023–24, highlighting the ongoing need for temporary protection while debtors consider their options.
On returns to creditors, outcomes are also improving in some areas. Bankruptcy cases concluded in 2024–25 delivered an average dividend of 11.1 pence in the pound, up from 8.1 pence the previous year. PTDs, however, saw a slight dip, with dividends averaging 16.3 pence, compared with 17.3 pence in 2023–24.
Corporate insolvencies remain stable
The picture for businesses was relatively stable. Corporate insolvencies totaled 1,175, only seven more than in the prior year – a sign that corporate distress is holding steady despite wider economic challenges.
Overall, the statistics highlight a turning point: insolvency numbers are edging down, but debt repayment solutions like DAS are taking center stage. The fact that more money is being repaid, rather than written off, may be seen as a positive development for both creditors and the wider economy.
If you're feeling overwhelmed by problem debt, reach out to our team of specialist debt advisers. We also offer free, confidential, compassionate guidance to help you explore your options and find the right solution. Email advice@tcdebtsolutions.com or call 0800 046 3328.
About the author
Ian Brown