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Number of Scottish debt judgements falls

Category: Scottish Economy — Mark on April 18, 2013

New figures have shown that the number of debt judgements made against Scottish firms fell in the last year, with the level of debt being taken on by companies also falling.

The figures, which were released by the Registry Trust, have shown there were nearly 1,000 fewer judgements made in 2012, compared to 2011. There were 6,062 debt judgements throughout 2011, which fell to 5,075 in the last year.

The figures from the not-for-profit organisation also revealed that there was a slight drop in the overall business debt in Scotland. It dropped by £1m, from the 2011 level of £28.6m to £27.6m.

The organisation, which collates summary decrees, ordinary causes and small claims information for Scotland, showed the average debt level for firms in the country stood at £5,437.

As businesses consolidate and switch to alternative ways to boost their cash flows, such as invoice factoring, these figures could continue to slide.

The Registry Trust also revealed that creditors, many likely to have had unpaid invoices for long after stipulated periods, are taking debtors to court sooner.

The organisation’s chairman, Malcolm Hurlston, said:

“It is noteworthy that creditors are finding it worthwhile to pursue smaller sums from consumers in the courts.”

Hurlston also suggested that other methods may be being used to recover debt, as he pointed out that there are a number of options now open to creditors.

The figures also detailed consumer trends for the year; with judgements here also falling by nearly a third throughout 2012.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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