Sharp rise in number of firms facing insolvency and financial distress
September 5th 2022The 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,…
Law to resolve Covid commercial rent debts comes into effect
April 13th 2022A 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…
Debt Recovery: Someone is threatening to bankrupt me, what should I do?
January 1st 2021Debt Recovery: Someone is threatening to bankrupt me, what should I do? First – do you admit owing the money? If not, then get in touch because where there is a “genuine dispute” as to a debt, a creditor cannot make someone bankrupt (or liquidate a company). However, if you receive any formal documents then there are very strict time limits for responding so don’t delay.If you admit owing the…
Debt Recovery: Someone can’t pay me – can I bankrupt them?
January 1st 2021Debt Recovery: Someone can’t pay me – can I bankrupt them? The short answer is yes – but only where there isn’t a dispute as to the debt; and there is still a process to follow.You should also consider if bankruptcy is likely to get you paid at a proportionate cost, other options are available. Our debt recovery team can provide you with details of all of the options and…
My partner is being made bankrupt – does that affect our house or my own assets?
January 1st 2021My partner is being made bankrupt – does that affect our house or my own assets? The precise answer to this will depend on the detail. A share of jointly owned assets can form part of a bankrupt estate – but the ability to enforce against that asset has restrictions. Similarly, a Trustee in Bankruptcy can review historic transactions of a Bankrupt person to reclaim assets into a bankrupt estate.…
Treasury introduces new rules for sending out debt letters
November 4th 2020The Treasury is introducing new rules on how businesses should construct letters sent to people in debt. Carly Davies Debt Recovery Manager provides an update. The emphasis will be on helping customers to better understand and manage their debts, reducing distress and supporting mental health Default Notices are designed to give people who are falling behind on their debts fair warning before lenders take further action, but much of the…
New rules to ensure large firms pay promptly come into effect
October 21st 2019New rules that mean large companies could lose lucrative government business if they don’t pay their suppliers on time have now come into force. The rules, effective from 1 September, mean companies must pay 95% of their invoices within 60 days or run the risk of losing out on major government contracts. This will be particularly beneficial for small businesses, which are an important part of the supply chain. The…
New measures being planned to ensure SMEs are paid on time
July 15th 2019By Carly Davies Credit Control & Debt Recovery The government is planning to ease the cash flow burden on small firms by making the boards of large companies accountable for late payments to suppliers. It is part of an ongoing effort to tackle the issue of late payment, which can be the difference between success and failure for many SMEs. Large companies could also face fines and have binding payment…
