Accountant in Bankruptcy

Gillian Thompson Speaks About AiB's Significant Role in Scotland's Economic Future

16/02/2009

With Britain's economy now being described as in recession and future projections forecasting difficult economic times ahead, Accountant in Bankruptcy (AiB) and its role in Scotland's economic future, is now under the spotlight.

AiB's Chief Executive and The Accountant in Bankruptcy, Gillian Thompson, recently spoke about the challenging times that lie ahead and how the Agency is working hard in its commitment to provide a variety of debt solutions. She describes how AiB is striving to break the stigma attached to bankruptcy which, for many people, can be the most appropriate way out of the confines of severe debt.

In an interview with Holyrood Magazine, she explained:

"As an Agency of the Scottish Government, AiB operates independently and impartially whilst remaining directly accountable to Scottish Ministers. As The Accountant in Bankruptcy I have statutory powers and responsibility for advising Ministers on bankruptcy issues whilst overseeing the function of the Agency on both policy development and service delivery matters. Administering the process of personal bankruptcy and recording corporate insolvencies in Scotland, AiB plays a vital role in the Government's vision for sustainable economic growth."

"The job we perform is not an easy one but one that should be recognised in the shifting climate of today's Scotland. Yes, debt management is always a better option but we also do not want to further stigmatise this sometimes necessary way out. Bankruptcy is a formal method of dealing with debts if other options have failed or are inappropriate. The consequences are severe and no one should make an application for bankruptcy without seeking advice from trained money advisors or insolvency practitioners."

"The Scottish Government have made clear moves to protect the most vulnerable individuals with the introduction of the LILA route into bankruptcy and the Agency is continuing to consider further improvements in the wider range of debt solutions available to those not yet facing this final step. Whether through a debt payment programme, the Debt Arrangement Scheme (DAS), Trust Deeds or indeed through the bankruptcy route, AiB provides an important service which maintains economic balance. "

"In either healthy or weak economic circumstances, the role of bankruptcy makes an important contribution to the economy. Of course people should not treat bankruptcy lightly but nor should they be disadvantaged by debt. In my view it is necessary that money flows through the economy and an appropriate level of entrepreneurial risk is taken. It is important that we respond appropriately and quickly to changes in economic circumstances to maintain financial flows and confidence. It is also critical that policy on bankruptcy sits hand in hand with delivery and the one informs the other to support government economic interventions. With current projections that the foreseeable future will be difficult this is even more important. I therefore believe that in the future AiB has an even greater role to play."

"Although AiB is not an advice giving agency we do hold the knowledge and expertise on all matters of insolvency in Scotland. The current remit and structure of my agency may change over time but our purpose will remain the same, to provide a high quality service to the people of Scotland and where we can to make a positive difference."