Bankruptcy hits 7 a day in Lothians

Published on Friday 22 October 2010 16:21

Around seven people were declared bankrupt every day in the Lothians over the last two years, new figures show.

The Lothians' three sheriff courts were all in Scotland's top five for total creditor sequestrations, where creditors force an insolvency through the courts to reclaim debts.

Figures obtained by Accountants In Bankruptcy (AiB), the body responsible for supervising insolvencies in Scotland, reveal that 5187 people were declared bankrupt in the Lothians between July 2008 and June 2010.

However, the figures show that Edinburgh is well below the national average for sequestrations per head of population.

More than six people were petitioned for every 1000 people in Scotland as a whole, compared to just one person per 1000 at Edinburgh Sheriff Court, which also handles petitions from Midlothian.

Graham Birse, deputy chief executive at Edinburgh Chamber of Commerce, said: "The fact that Edinburgh's figures are below the national average simply reflects what is already known - that Edinburgh is more resilient than other places in the present economy.

"It must be said though that each one of the numbers masks a tale of personal tragedy because insolvency is a very difficult process to go through."

Edinburgh Sheriff Court handled 510 creditor petitions during the period, the third highest in Scotland.

Despite its small population, Haddington Sheriff Court, which pursues debtors in East Lothian, handled the fourth highest number in Scotland with 497 petitions. The news came as a surprise to advice charities and business leaders.

Anne Hastie, director of Haddington Citizens Advice Bureau (CAB), said: "East Lothian Council is very proactive at pursuing people who have fallen behind with their payments, but they are required to do this by law and I don't have any evidence that they are any more proactive than other local authorities.

"In fact, they are usually extremely helpful when we ask them to consider other options."

A spokesman for East Lothian Council also suggested that the rural nature of local businesses could be a factor.

He said: "If you're trying to run a business in an isolated part of the country, this can make you more susceptible to a downturn in the economy."

West Lothian saw the fifth highest number of sequestrations, with 439 overall.

'I'll be back' says Rosario

MARK McLAUGHLIN

CHEF Rosario Sartore knows the pain of losing everything after his attempts to self-fund his multi-award winning Broughton restaurant ended in bankruptcy.

The father-of-four remains head chef at the recently re-branded Locanda De Gusti, on East London Street, but it's a far cry from the days when he was his own boss.

The Italian chef, 38, said: "I'm still young so I'll be back on top in no time."