The number of Scottish businesses entering a CVL has increased in the first quarter 2015/16 by 25%, according to data from Scotland’s Insolvency Service, Accountant in Bankruptcy (AiB).
Interestingly, the number of compulsory liquidations has actually fallen across the country compared to the last quarter.
As shown in the table below, the total number of registered insolvencies (consisting of CVLs, compulsory liquidations and receivership) has stayed the same since Q4.
Looking at the year on year figures, Scottish insolvencies have fallen by 21.2%. However, the number of companies in a CVL has increased by 12.9% since Q1 2014/15. This indicates more businesses are proactive in going ahead with the insolvency procedure and ending their bad debts instead of leaving the courts to appoint a liquidator and wind up the company.
The latest UK Insolvency Statistics will be published next week - figures are expected to show an overall decline in company insolvencies.