In Scotland claims (e.g. the right to payment) are currently transferred by assignation followed by intimation (i.e. notice) of the transfer to the party which is under an obligation to perform the obligation (e.g. making a payment).

The government’s monthly insolvency statistics for June 2022 paint a picture of an economy that is still struggling to return to pre-pandemic profitability. Company insolvencies were 40% higher than for the same period last year and 15% higher than in June 2019 (i.e. pre-pandemic levels), with the increased level of insolvencies being largely driven by the higher number of creditors’ voluntary liquidations.

As regular readers of our blogs will know, a group claims procedure came into force in Scotland on 31 July 2020.

Anyone working in financial services will be aware of the requirement for individuals carrying out regulated roles to be "fit and proper". Clearly this is going to include solid personal finances and demonstrable honesty and integrity. The EAT decided that an estate agent who was dismissed because he became bankrupt and did not tell his employer was fairly dismissed.

On 22 July 2022, judgment was handed down in relation to the sanction of the first Part 26A restructuring plan to be proposed by a small–medium enterprise (SME) in Re Houst Limited [2022] EWHC 1941 (Ch). The restructuring plan (RP) procedure set out in Part 26A of the Companies Act 2006 (CA 2006) has been widely considered to be out of the reach of SMEs due to excessive cost. The decision is also an interesting one for other reasons, notably the cram-down of HMRC as a dissenting creditor.

Today’s insolvency statistics contained few surprises, creditors’ voluntary liquidations (CVLs) have continued to outnumber other types of company insolvencies by some margin and have distorted the overall picture, which is that (putting aside CVLs where directors/shareholders elect to pull the plug themselves on a company’s survival) figures for other types of company insolvencies remain below pre-pandemic figures.

Do landlords do get a good deal in CVAs? It would seem they do (if you don't read the small print…)

A few weeks ago we blogged that we were expecting RSM's research report, which was commissioned by the Insolvency Service, into the impact of CVAs on the landlords. The specific question in the research paper was: "are landlords equitably treated, compared to other creditors in large business CVAs?".

For those who missed it the Insolvency Service published an excellent research report at the end of June which focuses on the treatment of landlords in company voluntary arrangements (CVAs). This was against the backdrop of a large number of "landlord" CVAs in recent years – particularly in the retail and casual dining sectors – where landlords have often complained that they have been unfairly treated compared to other compromised creditors. The report concludes that landlords are, broadly speaking, equitably treated compared to other classes of unsecured creditors.

This series looks at the enforcement options available to creditors to recover sums due by a debtor in Scotland. In the previous edition we looked at Inhibition which is similar to a Charging Order in England. A reminder can be read here. In this edition, we now turn to look at how Earnings Arrestment operates in Scotland.

The Insolvency Service has published a consultation on the implementation of two UNCITRAL "model laws" relating to insolvency: the Model Law on Recognition and Enforcement of Insolvency-Related Judgments (MLIJ), and the Model Law on Enterprise Group Insolvency (MLEG). The UK has already enacted legislation based on the Model Law on Cross-Border Insolvency, in the form of the Cross-Border Insolvency Regulations 2006 (CBIR).