Legal Updates

Insolvencies ''could rise by a third'' in Scotland

Date:  11 Aug 2008

Scottish business failures will rise by a third in the second half of 2008, according to on business lawyer.

Corporate recovery and insolvency expert Gordon Hollerin said the effects of the credit crunch and "resulting downturn in consumer confidence" were leading many insolvency practitioners to anticipate "a in business failures", reports the Sunday Herald.

He added: "Company directors have to be aware of the personal risks which arise in these circumstances.

"Rather than bury their heads in the sand they have to take appropriate steps to manage those risks, to avoid both personal liability for the company''s debts and the possibility of disqualification as directors for up to 15 years."

London business owners may be concerned of the potential for such a trend to extend south into England, where redundancies are already being seen in a number of sectors - including property, construction and legal.

Meanwhile, the Federation of Small Businesses has warned of the danger of businesses bringing about their own downfall through continued negativity.

Michael Ellis is an insolvency expert working at VT and dealing with all aspects of insolvency law.

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