- Corporate insolvencies (liquidation / receiverships) in Scotland increased 27% from 294 in 2024-25 Q4 to 375 in 2025-26 Q4. With a 76% increase month on month from 213 in 2025-26 Q3.
- Under the Debt Arrangement Scheme (DAS), there were 1,257 Debt Payment Programmes (DPPs) approved in 2025-26 Q4, an increase of 2.9% compared with 1,221 in 2024-25 Q4.
- Personal insolvencies in Scotland increased by 6% to 2,003 in 2025-26 Q4 from 1,896 compared to 2025-26 Q3 and increased by 19% compared with 2024-25 Q4.
These statistics are compiled by Accountant in Bankruptcy (AiB), an executive agency of the Scottish Government. Commenting on the latest insolvency stats, Emma Widdowson, chair of R3 in Scotland and legal director at Addleshaw Goddard, commented:
‘The continuing rise in corporate insolvencies in Scotland in the final quarter of the financial year suggests that many businesses have reached a tipping point after a prolonged period of financial pressure. Persistently high operating costs, including energy, staffing and borrowing, continue to weigh on margins, while subdued consumer demand has limited opportunities to rebuild financial resilience.
‘The timing of these figures is also significant. With the Scottish elections approaching in May 2026, uncertainty around future policy, taxation and regulatory priorities may be influencing business behaviour. In periods of political uncertainty, directors can be more reluctant to commit to investment or restructuring plans, and in some cases this delay can narrow the options available when financial pressures intensify.
‘The continued rise in personal insolvencies, alongside growth in Debt Payment Programmes under the Debt Arrangement Scheme, points to sustained pressure on household finances. Rising living costs and higher interest rates are leaving many individuals with less financial flexibility, leading more people to seek formal debt solutions.
‘These trends underline the importance of acting early. Whether for businesses facing cashflow challenges or individuals struggling to manage debt, R3 members continue to advocate for individuals and businesses to seek early engagement with professional advice to make a considered decision that leads to better outcomes.’
