Insolvency specialist predicts 20% surge in business failures

[Scottish Business Owner]

An interesting article in The Herald today from Campbell Dallas regarding a predicted increase in both business and personal insolvencies. Interesting to note that he's highlighting the banks pushing credit to people who couldn't afford it as a big factor in personal insolvencies.

Insolvency Specialist Predicts 20 Surge In Business Failures (from The Herald )

 

[Power Lunch Club]

I suppose the other side of the coin is saying that there are an element of people who shouldn't be running business as they are making too many mistakes.

I know of one chap who has gone bamkrupt twice. And running a business still. Now you could argue that his is incompetant or is he someone in business who has learnt from his mistakes and therefore going to be better at what he does.

Or should he just never be allowed to run a business again....currently he is not allowed to be a director of a business at present.

What do you think?

I am trying to find a link to a Radio 4 called Debt Doctors, broadcast last week sometime...when i find it i'll put it up...it was really interesting. About a series of companies who for various reasons went into liquadation...but it was more about how the organsation help them through the difficult time. Did anyone else hear it?

Gordon
PLC

 

[Scottish Business Owner]

The bankruptcy rules that have only recently been introduced have not gone without criticism. I think even I would agree that they are now seen as an easy way out as you can now be discharged from bankruptcy in as little as a year.

I'm always amazed in the limited company scenario how easy it is to simply call in the administrators and walk away from all the mess, there doesn't seem to be a lot of accountability and there's simply no punishment that would put people off from doing it again. Many people do abuse the system for their own gain which is just plain wrong.

 

[ScottJ]

A surge in business failures is also a surge in opportunity for others.