Business Debt Recovery

Corporate insolvencies soared by 37.7% in March to their highest level for three years, according to figures from the Insolvency Service. Carly Davies, our Debt Control Manager provides an update. There was a total of 2,457 insolvencies in March 2023 compared to February’s total of 1,784. That was a 15.9% increase compared to March 2022’s figure of 2,120.  Corporate insolvencies increased by 145.9% from March 2021’s total of 999 and by 99.3%…

Corporate insolvencies soared last year as businesses struggled to cope with increasing financial turmoil, most of it outside of their control. Carly Davies, our Debt Control Manager provides an update. Figures from the Insolvency Service show there were a total of 1,964 corporate insolvencies in December. That was 31.9% higher than December 2021 and 75.5% higher than the same month in 2019, before the Covid pandemic. The figures reflect the pressures companies…

The government has announced a comprehensive review into tackling late payments for small businesses. It has also urged large companies to pay their suppliers promptly. Carly Davies, our Debt Control Manager provides an update. Ministers say they’re concerned that small businesses routinely spend significant time and resources chasing late payments from businesses they supply. This can lead to cash flow problems, putting their firms at risk and preventing them from growing. Most…

The Insolvency Service has increased the cost of deposits paid to initiate creditor bankruptcies and compulsory liquidations. Carly Davies, our Debt Control Manager reports. The petition deposit, the amount that needs to be paid up-front to seek an order, has increased in all cases where a petition is filed at court after 1 November 2022.   There will be no change to the adjudicator petition deposit where the individual applies for their own…

The number of firms going out of business or facing serious financial distress has risen sharply this year, according to the latest figures.  Carly Davies, our Debt Control Manager reports. The Insolvency Service says there were 5,629 corporate insolvencies in Q2, an increase of 12.7% compared to Q1’s figures of 4,995, and an increase of 81.3% compared to Q2 2021 (3,105).   Meanwhile, the Red Flag Alert produced by the recovery, financial advisory,…

A new law to resolve commercial rent debts accrued because of the pandemic has now come into effect. Carly Davies, our Debt Control Manager, provides an update. The Commercial Rent (Coronavirus) Act 2022 provides a legally binding arbitration process for eligible commercial landlords and tenants who have not already reached an agreement.   It’s designed to resolve disputes about certain pandemic-related rent debt and help the market return to normal as quickly as…

The late payment problem is getting worse and is now threatening to destroy thousands of small businesses, according to a survey carried out by the Federation of Small Businesses (FSB). Carly Davies, our Debt Control Manager, provides an update. The study of more than 1,200 business owners found that one in three businesses (30%) have seen late payment of invoices increase over the last three months, with a further 8%…

The government is introducing new powers to clamp down on directors who dissolve companies to avoid paying their liabilities. Rogue directors may be required to pay compensation to creditors. Carly Davies Debt Recovery Manager provides an update. The new legislation extends the Insolvency Service’s powers to investigate and disqualify company directors who abuse the company dissolution process. The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act will also help tackle directors…

Businesses are being urged to monitor their cash flow as corporate insolvencies look set to rise despite the easing of lockdown restrictions. Carly Davies Debt Recovery Manager provides an update. The insolvency and restructuring trade body R3 says that government support such as the furlough scheme have masked the difficulties some companies are facing. There were 2,384 seasonally adjusted corporate insolvencies in the first quarter of this year, a reduction of…

The newly appointed Small Business Commissioner is to spearhead a national effort to crack down on late payment of invoices – which cause thousands of small businesses to close every year. Carly Davies Debt Recovery Manager provides an update. Former journalist Liz Barclay will be the first woman to hold the position, which was created in 2016 to help small businesses secure the payments owed to them and to galvanise UK…