Creditors chase law firms harder for debts

The failure of law firms to pay their debts, despite increased action from creditors, has emerged as the most common factor in law practice insolvencies in the UK.

18 February 2014

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Non-payment of debt was a factor in 82 per cent of case studies observed by the Solicitors Regulatory Authority (SRA) in some new research. There was a noticeable correlation here between non-payment and 'poor financial and business management'. The two factors were present in 29 per cent of failures.The SRA said: 'We have observed a shift in the chasing of debt, with companies and organisations pursuing solicitor firms more vigorously for ever-decreasing sums of money.' Source: Insolvency News