Accountancy firms in Scotland are preparing for a spike in insolvency demand in the early part of next year.

One Edinburgh-based firm, Johnston Carmichael has increased its headcount by 40%.

Matt Henderson, an insolvency practitioner with the firm, said: 'We believe spring 2009 will be the peak and we are expanding accordingly,' scotsman.com reported.

'I, and also members of my staff, have had a lot more calls from recruitment consultants than usual, suggesting other firms are doing the same and that there are more jobs around.'

It is now easier to declare bankruptcy in Scotland after a recent rule change. This is expected to translate into a higher number of personal insolvencies in Scotland next year.