- Corporate insolvencies in Scotland decreased in 2025-26 Q3 by 29% in respect of a change 2025-26 Q2 from 298 to 213 and by 25% decrease against the figures for 2024-25 Q3 where the figure was 285.
- Of the 213 corporate insolvencies this quarter, there were 96 compulsory liquidations, 39 CVLs and 78 MVLs.
- 774 bankruptcies were awarded in 2025-26 Q3, an increase of 25.2% compared with 2024-25 Q3. The majority (86.4%) were debtor applications where 90% of debtors paid no fee and 65% of which were Minimal Asset Processes. Creditor petitions were down slightly to 105 from 113 in 2024-25 Q3.
- Personal insolvencies in Scotland increased by 6% to 1,896 in 2025-26 Q3 from 1792 compared with 2025-26 Q2.
Commenting on the latest insolvency stats, Emma Widdowson, chair of R3 in Scotland and legal director at Addleshaw Goddard, commented:
“While it’s good to see a decrease in today’s corporate insolvency figures from Accountant in Bankruptcy (AiB), the executive agency of the Scottish Government, there continues to be increases in personal insolvency. The recent decrease in Scottish unemployment figures to 3.7% (lower than the UK average of 5.1%) does not seem to be reducing personal insolvency.
“Today’s figures are being published against a backdrop of continued financial strain facing businesses and individuals. Although the data collected from AiB pre-dates the Scottish government’s latest budget and the implementation of changes announced in the UK government’s autumn budget, businesses and consumers may have stalled major decisions and have hoped those measures stimulate growth and investment during the year ahead.
Initiatives such as expanding the Scottish Child Payment and pledging universal breakfast clubs are positive steps for vulnerable households, but these are long-term commitments, many not due until 2027. In the short term, the financial pressures driving insolvency trends remain very real.
“For businesses the reduction in non-domestic rates and transitional reliefs are good news, but with many businesses still operating with minimal reserves, it remains to be seen if this will be enough to prevent them from tipping into financial distress. The Scottish Fiscal Commission’s forecasts suggest revenue pressures will persist, and if economic growth stalls, insolvency numbers could rise among SMEs in particular.
“Turning to personal insolvencies, the signs are that these are likely to continue to creep up. Credit card borrowing rose at the fastest annual rate for almost two years in November, according to the Bank of England, as households took on debt to finance the rising cost of Christmas. While reliance on credit is understandable, it can leave some households at risk of personal insolvency in the coming months when paying off Christmas spending while still meeting the rising cost of food and household bills.
“More people may opt for bankruptcy as a way to reset their finances, particularly if creditor pressure intensifies. While bankruptcy wipes unsecured debts and protects essential assets like a home, it also curtails access to future borrowing so is something to be avoided where possible.
“Today’s figures suggest insolvency practitioners will remain busy, helping individuals and businesses navigate a challenging landscape.
“R3 members continue to advocate for individuals and businesses to seek early advice to prevent avoidable failures. Early intervention provides more options to engage with creditors and more time to make a considered decision about how to best move forward.”
