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Insolvency amongst solicitors set to rise

Richard Glithero, head of insolvency at Manchester Solicitors Pannone, warned that the number of law firms falling into insolvency is set to reach record levels during 2010.

According to the Solicitors Regulation Authority, 98 firms closed in the second quarter of 2009, 21 per cent up on the same period the previous year.

With small firms, sole practitioners and practices which are heavily reliant on personal injury or conveyancing work most vulnerable. These practices are especially vulnerable to fraud, lack of funding and soaring insurance premiums, particularly the soaring cost of professional indemnity insurance, which many firms cannot afford to pay.

The introduction of supermarkets, larger insurers, estate agents and banks in areas such as family law, personal injury, wills, trust and probate, will also put pressure the viability of smaller companies.

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