Bankruptcy In Scotland Figures Up

Bankruptcy in Scotland was a record Up in 2007 according to figures from accountants PKF.  The bankruptcy research showed that the average bankrupt is a 40 year old male with debts of nearly £43,000, although a quarter of the bankruptcy total are now aged below 30.

This situation can only get worse during the year ahead, according to Bryan Jackson, corporate recovery partner of PKF.  He has said “given the tightening in the availability of credit and the fall in house prices it is inevitable that many individuals, with high debts and without the safety net of property equity, will find 2008 very difficult”.

Our view

Given the previously freely available credit lines, people have become accustomed to borrowing.  However, as the credit crunch squeeze starts to bite as lenders tighten their belts, the credit crunch effect is likely to force more people to declare themselves Bankrupt.

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