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Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

21 JUL 2011

Insolvency Items in the News: R3 and KPMG research on Scottish debt habits and Holliake bankruptcy blues

It is a little light on the insolvency front this week. The silly season and Murdoch affair have taken over the news waves! There are however three pieces of note. First, R3 have published a report on Scottish debt habits. The organisation have been quoted as saying on the Scottish trend towards pay day loans:

"It is extremely worrying that such a large percentage of people are struggling to make it to payday and that many are using payday loans to bridge the gap. "These loans tend to have high interest rates and often those who use this type of credit find themselves in a vicious debt cycle, especially if they then experience a sudden job loss. If someone is finding it difficult to pay their bills, it is good to seek financial advice before taking out further lines of credit as these stop-gap measures can exacerbate the situation."

Elsewhere, The Daily Record has published an interesting piece drawing on some KPMG research that shows that more firms are going into liquidation in Scotland. KPMG's Blair Nimmo has been quoted as saying:

"During the last three troubled years, insolvency levels have never hit the levels anticipated due to a number of factors including a keen focus on cost and cost control by many management teams, and I suspect this will continue for the foreseeable future. Whilst there are some positive indicators, we continue to live in uncertain times where we have not yet seen the full impact of tax increases and spending cuts, and in Scotland we have the added uncertainty of an election in May. The vast majority of our clients have however had a good 2010 and enter this year with cautious optimism. Indeed there is every reason to suggest, depending largely on what sector and markets you operate in, if you have survived the last three years there is no reason why you will not go on to prosper in the years ahead."

Perhaps the Murdoch affair is a useful distraction for the SNP's societal debt problems! Finally, the Australian Daily Telegraph has reported that cricketer Adam Holliake is keen to bounce back from bankruptcy. Let us hope that his discharge is delivered with no spin. 

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