That Scottish corporate insolvencies are down on last year by a significant margin is encouraging and these statistics confirm that, for the most part, the corporate insolvency market has finished consolidating itself. By Yvonne Brady, Head of corporate restructuring at law firm HBJ Gateley.

But they can also be seen as a reflection of the changing landscape of corporate restructuring. Corporate restructuring is evolving along with new ways of doing business – including increased access to and reliance on the internet; while alternative finance options are also a factor in the changing landscape of the distressed sector. This combination is giving businesses more flexibility and options as to how they reshape themselves, which in turn may lead to higher survival rates for companies in distress. Overall, this is positive for Scottish commerce.

However, in future, we might see sector-specific spikes in insolvencies as different industries continue to adjust to micro-economic pressures. For example, with the double whammy of consumers’ post-recession cost focus and the rise of digital technologies in delivering everything from groceries to clothing, the retail sector will never be the same again. The decrease in personal insolvencies is clearly positive news for  individuals. The consumer lending market has been very prudent in its lending policies post-recession which appears to be paying off. Affordability of lending and credit is key in helping individuals maintain better financial positions, while the introduction of new options for individuals to tackle debt issues and to avoid bankruptcy is clearly having the desired impact.”