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23/04/2014

Q4 2013 Scotland insolvency statistics - R3 comments

Responding to the official quarterly insolvency statistics from Accountant in Bankruptcy – which shows personal insolvencies in Scotland falling from Q3 to Q4 2013/2014 and a rise in corporate insolvencies – Tim Cooper, spokesperson in Scotland for R3 says:

“The fall in new personal insolvency cases is welcome. The overall numbers are consistent with a general decline in new cases since 2008/09. Any evidence that people are managing their personal finances better is to be welcomed.”

“Bankruptcies are continuing to increase which, when taken alongside the rise in corporate insolvency, could be an indicator of the economic recovery strengthening: the stresses and strains of a return to growth can be more challenging for businesses than the depths of recession.”

“The official statistics do not necessarily tell the full picture on personal finances in Scotland though. Our recent research has shown that over 200,000 Scots have used a payday loan recently while 39% of Scots surveyed told us they often or sometimes struggle to make it to payday. This would suggest that there are still a sizeable amount of people in Scotland struggling with the cost of living.”

“The medium and long-term outlook is mixed: the expected rise in interest rates will very likely have a knock-on effect on insolvency numbers.”

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.