Bankruptcy made clearer: One of the bastions of old-style Scots terminology, guaranteed to perplex Southern audiences, is the law of bankruptcy in Scotland as it applies to individuals and assorted others.
But maybe for no longer. The Bankruptcy (Scotland) Act 2016 has reached the statute book. It’s a consolidating act, encompassing statutes from 1985, 1993, 2002, 2007, 2012 and 2014. It introduces a new and fairly modern framework, the aim being to make it less cumbersome and easier to use by those who do not have intimate knowledge of it (most of us!).
While bankruptcy law applies mainly to individuals, such as personal guarantors, it also applies to bodies corporate that don’t fall within the Insolvency Act regime. One large class of such bodies corporate is the 32 Scottish local authorities.
Traditionalists will be heartened, however, that the office of a trustee in sequestration is retained. The days of explaining it all to puzzled audiences are not yet over. Click here for a more detailed article on the new Act.
Solicitors under pressure: Heather Capital Ltd was an investment vehicle backed by substantial contributions by US private equity interests. It went into liquidation in 2010 with virtually no assets, and in recent months the liquidator has been active in the Scottish courts pursuing potential avenues of redress.
In the firing line are legal firms that advised Heather Capital on loans and investments that it made and that turned out to be irrecoverable, including specified individual partners at the relevant times in those firms. The most recent activity has been a decision that the running of the prescriptive period for raising an action did not prevent the action proceeding to a fuller inquiry. Heather Capital Ltd in liquidation and Paul Duffy as liquidator against Levy & McRae and others  CSOH.