Thursday 15th of October 2009
The number of bankruptcies in Scotland is still rising - albeit at a slower rate - according to an accountancy firm.
David Menzies, restructuring and recovery partner at Baker Tilly which analysed figures from the Edinburgh Telegraph before making the claim, said: "The fall in administrations does not indicate businesses are out of the woods yet."
"In a large number of cases, Her Majesty’s Revenue and Customs business payment support scheme seems to be providing a life-belt for many organisations," he told the Scotsman.
Around 6,500 new bankruptcy cases were filed in Scotland in September - a rise of five per cent on August’s figures.
But this shows bankruptcies are slowing down compared with the previous two months when the increase was by almost ten per cent.
And the number of companies in financial meltdown over the last quarter is also slightly down on the previous quarter.
Bankruptcy is a last resort for individuals or companies looking to wipe out their debt.
Earlier this month ex-Celtic footballer Bobo Balde agreed to pay back a debt of £8,000 after a Scottish court declared him bankrupt.
By Mark Waterman
- Alternatives to bankruptcy available, expert notes
- Bankruptcy 'should be a last resort' to tackle debt management issues
- Bankruptcy 'has improved attitude towards debt'
- Insolvency levels rising, figures show
- Negative equity leading to bankruptcy increase, says expert
- Bankruptcy is 'last resort, IVAs could be better'
