Why Are Insolvencies So High?
Recent figures from the Insolvency Service show a record high in the number of personal insolvencies in England and Wales with a particularly steep rise in the number of Individual Voluntary Arrangements (IVAs), which are a variation on the traditional bankruptcy process in that they can allow the insolvent individual to retain ownership of assets […]
The importance of insolvency law
While insolvency law can seem intimidating, it actually exists to serve a very important purpose, namely to ensure the orderly wind-up of a company. When a company goes into insolvency, there are three groups of people who feel the main impact of it, they are creditors, staff (directors and employees) and shareholders. Insolvency law gives […]
Household debt at new high
The festive period can be a difficult time for both our waistlines and our wallets. It’s therefore hardly a surprise that New Year tends to be a time when many people take up exercise plans and review their finances and, in particular, to deal with their debt. A recent study by the Trades Union Congress […]
Debt Lessons
There’s an old joke that the only certainties in this world are death and taxes, but in this day and age, we could probably add debt to the list since most of us will have it at some point in our lives. With that in mind, here are four basic lessons about debt which could […]
What does going into administration mean?
We\’ve also seen recent headlines of large companies going in \”Administration\” but what exactly does it mean? Company directors are legally forbidden from allowing a company to continue to trade when they know it is insolvent. They do not, however, necessarily, have to wind up the company immediately and declare it failed. Instead they can […]
Don’t be tempted by unlawful ways out of financial difficulty
There are countless stories about people resorting to crime to resolve their financial difficulties, right now, possibly the most famous example of this is Breaking Bad. Some of these stories can make for great entertainment, but in the real world, leaving ethics aside, the most obvious problem with crime is the risk of getting caught […]
What does “winding up” mean?
In simple terms, winding up a company means bringing it to an orderly end, or at least as orderly an end as possible. In practical terms, winding up may have different meanings depending on the exact situation. The company directors wish to wind up the company even though it is still solvent Although people might […]
Don’t get sucked into Xmas Debt
Christmas lights are being switched on all around the UK and Christmas advertising is getting into full swing. It’s that time of the year. Love it or hate it, it’s difficult to ignore it and only too easy to wind up spending more on it than you intended or, really, should have. If you’ve been […]
Client insolvency, what it means for you
One of the golden rules of business is that cash flow is all-important. Ultimately cash flow depends on customers paying their bills and that, in turn, depends on them being solvent enough to do so. Given these two hard facts, it makes sense to take client insolvency into consideration when creating your business plans, even […]
Securing your business effectively
You may or may not think of yourself as a business owner, but the fact is that if you earn any sort of income outside of paid employment or a pension, then in practical terms, there’s a good chance that’s exactly what you are. As such, it could be very wise for you to take […]