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 Trends: Q4 2025 – 26
Scottish Insolvency Data
Scotland’s latest statutory debt figures, published by the Accountant in Bankruptcy (AiB), for January to March 2026 show a clear rise across both individual and business solutions.
Personal Insolvencies
Personal insolvencies (bankruptcies and protected trust deeds) reached 2,003 cases, an increase of 332 or 19.9% year-on-year.
The revised bankruptcy fee structure continues to improve access, with 91.7% of the 591 applicants in the quarter paying no fee.
Meanwhile, the Debt Arrangement Scheme (DAS) saw 1,257 Debt Payment Programmes approved (up 2.9%) compared with the same period last year, and moratorium applications rose by 15.5% to 1,094 – a possible sign of increasing pressure on households and sole traders.
Corporate Insolvencies
Corporate insolvencies also increased, rising from 294 to 375 cases.
Notably, Members’ Voluntary Liquidations (MVLs) jumped by 55.5%, from 128 to 199 cases. This surge may reflect directors acting ahead of the Business Asset Disposal Relief (BADR) rate increase from 14% to 18% on 6 April 2026, accelerating solvent liquidations to take advantage of the lower tax rate.
Facing Difficult Decisions
Overall, while debt solution uptake had broadly stabilised in recent years, the latest figures suggest renewed pressure is building. Rising insolvencies, increased use of moratorium protections, and steady DAS activity all point to a financial environment where individuals and businesses alike are once again facing difficult decisions.
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