Worrying Statistics Released by the Accountancy in Bankruptcy
Quarterly figures released by the Accountancy in Bankruptcy (AiB) show a further increase in the number of personal insolvencies, with 3,310 awards of bankruptcy being made in the 3 month period to 31 May. This is a 26% rise on the previous quarter, which itself was substantially higher than the quarter before. On the corporate side, notices of 420 Scottish companies becoming insolvent were received by the AiB in the same period.
These figures can, in part, be put down to a change in the AiB’s fee structure which encouraged some to expedite the process to avoid this. However, the figures betray a worrying trend which most commentators consider is unlikely to reverse any time soon.
In these times it is important to stay on top of debts and businesses should be pro-active in their debt recovery procedures. At Mackinnons, we routinely assist our clients to create a clear debt recovery strategy to ensure the risks of bad debts are attended to quickly and sensibly.