- Corporate insolvencies in Scotland decreased by 5% to 298 in 2025-26 Q2 from 313 in 2024-25 Q2.
- Corporate insolvency numbers in Scotland for 2025-2026 Q2 decreased by 10% compared to last quarter.
- Personal insolvencies in Scotland decreased by 8% to 1,780 in 2025-26 Q2, down from 1,935 in Q1 and a decrease of 113 (6.0%) compared with 2024-25 Q2.
- There was a significant reduction in the number of Protected Trust Deeds (PTD) and a small reduction in Debt Arrangement Schemes (DAS), however there were 724 bankruptcies awarded in 2025-26 Q2, an increase of 27.9% compared with 2024-25 Q2.
Commenting on the latest insolvency stats, Emma Widdowson, chair of R3 in Scotland and legal director at Addleshaw Goddard, commented:
“Whilst it’s good to see a slight overall decrease in today’s corporate and personal insolvency figures from Accountant in Bankruptcy (AiB), the executive agency of the Scottish Government, there has been an increase in creditor enforcement. Today’s figures are being published against a backdrop of ongoing uncertainty which continues to dominate the business landscape. The UK November budget is weighing heavily on businesses and individuals alike and changes are likely to be reflected in the Scottish budget, which has been delayed until 13 January 2026.
“Speculation around potential changes to business taxation are creating hesitation among directors and investors. In an already difficult trading environment, this uncertainty is making it harder for businesses to plan for the future, particularly when it comes to recruitment, investment and expansion.
“Meanwhile, with subdued consumer demand and concerns about tax and regulatory burdens, some businesses are fighting hard to stay afloat. These pressures are reflected in business insights data from the Office for National Statistics, which revealed that around one in six (17%) trading businesses reported having no cash reserves in late September 2025 – the highest proportion since the question was introduced in June 2020.
“A lack of cash reserves leaves businesses vulnerable to even small financial shocks, such as a bad debt or loss of a customer, challenges which they might previously have been able to weather and could lead to insolvencies.
“Scotland’s labour market is also showing signs of strain with the number of people in work falling by 18,000 between June and August 2025, reflecting the broader impact of economic challenges.
“For personal insolvencies, this could also explain the sharp rise in bankruptcy applications compared to the decrease in alternative debt relief measures such as PTDs and DASs.
“Whilst there has been an overall decrease in individual insolvency, it is clear that widespread increases in essential bills have placed significant pressure on household budgets. The increase in unavoidable costs, such as energy, food and fuel, leaves little room for flexibility in a debt relief option for an already tight household budget such that bankruptcy has become the more used option this quarter. As a result, there is growing concern that over the Christmas period more people may be turning to credit to cover basic expenses, increasing the risk of unsustainable debt levels and yet more creditor pressures driving bankruptcies.
“Housing costs are also contributing to financial stress. The removal of the Scottish rent cap in March has led to rising rental prices, with the average monthly rent now sitting at £1,140, according to Rightmove. At the same time, homeownership is becoming increasingly out of reach for many, as house prices continue to climb and mortgage repayments remain high due to elevated interest rates.
“Taken together, this forms a continued strain across both the corporate and personal sectors.Businesses are grappling with a complex mix of financial and operational challenges, while individuals are facing more pressure on their personal finances.
“As always, our message remains clear: businesses or individuals experiencing financial distress should seek expert advice from a regulated professional as early as possible. Early intervention provides more options to engage with creditors and more time to make a considered decision about how to best move forward.”
Other findings from the latest statistics include:
Corporate insolvencies:
- Creditors’ voluntary liquidations decreased by 20.0% between 2024-25 Q2 and 2025-26 Q2.
- Compulsory liquidations increased from 108 to 134 over the same period.
- There were 92 members’ voluntary liquidations in 2025-26 Q2 compared with 147 in 2024-25 Q2. A decrease of 37.4%.
Personal insolvencies:
- Of the 724 awards of bankruptcy, 79.4% were debtor applications and 20.6% were creditor petitions.
- Creditor petitions increased from 129 in 2024-25 Q2 to 149 in 2025-26 Q2.
- Debtor applications for bankruptcy increased by 31.6% from 437 in 2024-25 Q2 to 575 in 2025-26 Q2.
- There were 1,056 PTDs registered in 2025-26 Q2, a decrease of 20.4% when compared with 2024-25 Q2.
- In 2025-26 Q2, there were 1,344 approved DPPs under the DAS, compared with 1,367 approved in 2024-25 Q2, a decrease of 1.7%.
- There were 951 moratorium applications (individual and entity) granted in 2025-26 Q2, an increase of 2.4% compared with the same quarter in 2024-25.
