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Insolvencies jump by a staggering 43% in August 2022
Startling new statistics have revealed the number of insolvent companies jumped by a staggering 43% in August 2022. Although high inflation has led consumers to reduce spending, this paints a bleak picture of the future of UK businesses. The government finally acted by freezing energy prices to lessen the blow of the recent hike in…
Mediation compulsory for County Court claims
The Ministry of Justice (MoJ) recently announced plans to introduce compulsory mediation sessions for County Court claims valued under £10,000. Under the new proposal, defendants and claimants with small claims under £10,000 must participate in a one-hour telephone mediation. The court will allow 28 days for the phone call to take place after close of…
Options for a profitable but insolvent company
As reports of company insolvencies come streaming in, it’s important for directors to weigh up business rescue options in advance. Panicking and making rash decisions under pressure could lead to a tragic , but wholly avoidable outcome. It is important to note that liquidation is not the only option available to you. One alternative is…
50% increase to bankruptcy and liquidation fees
Just months after lifting the temporary restrictions on winding-up petitions, the Government has revealed plans that will make it harder for thousands of SMEs and microbusinesses to collect debts and force debtors into insolvency procedures. The Insolvency Service plans to hike in the cost of two key payments later this year. Firstly, the deposit a…
What makes an independent insolvency expert?
An independent insolvency expert’s job can be tough, complicated, rewarding and at times exciting. It requires the application of several abilities, including intelligence, excellent people skills and technical knowledge. The ability to assess situations and how to attack each one is paramount. Of course, deep knowledge of insolvency law is vital. Insolvency is a fast…
The looming insolvency crisis
Back in May, we warned that a wave of company failures would hit UK firms in the latter half of 2022. Just three months later, it appears this insolvency crises may be even grimmer than predicted. This week, reports revealed that corporate insolvencies were up more than 80% in the past quarter compared to 2021.…
McDonald’s profits as UK restaurants flounder
American fast food chain McDonald’s recently announced plans to increase the price of some items on their UK menu. In a carefully-worded statement, McDonald’s U.K. and Ireland CEO, Alistair Macrow claimed that: “Just like you, our company, our franchisees who own and operate our restaurants, and our suppliers are all feeling the impact of rising…
Company insolvencies rapidly increasing
Government figures reveal a 40% increase in the number of registered companies that entered insolvency procedures during the past year. Newly-released data shows the number of companies entering statutory insolvency procedures has risen 15% compared to pre-pandemic levels in June 2019. Furthermore, the number of companies that were placed into a creditors’ voluntary liquidation (CVL)…
Insolvency Service adjusts IVA payment rules
The Insolvency Service is to overhaul the Individual Voluntary Arrangement (IVA) regime in the wake of the cost of living crisis. Individual Voluntary Arrangements are legally binding court-approved agreements that people make to pay all or part of the debts they owe. An IVA is a statutory insolvency procedure managed by an insolvency practitioner…
Prepare for the zombie company storm
Directors and business owners should expect to see the beginning of the pandemic fallout during the second half of 2022. Currently, Britain’s economy is operating with a dangerously high number of zombies, insolvent companies that: This miserable and worrisome situation is largely the result of a lethal cocktail of three corresponding events and issues: Ideally,…