What is A Letter Before Action?
A Letter Before Action (LBA) is a formal communication sent to a debtor as a final request for payment before initiating legal proceedings. Serving as a critical step in the debt recovery process, an LBA outlines the specifics of the outstanding debt and provides the recipient with an opportunity to settle the matter without court […]
Understanding Bankruptcy Restrictions Orders (BRO): What You Need to Know
Bankruptcy offers a fresh start for those overwhelmed by debt, but it also comes with responsibilities and restrictions to help ensure debts are managed transparently. However, if these obligations are not followed, the court may issue a Bankruptcy Restrictions Order (BRO), extending restrictions and limiting financial freedom even after bankruptcy discharge. Here’s a look at […]
Will Interest Rates Cause A Surge In Insolvencies?
It\’s been observed that there\’s a rising trend in the number of insolvencies, with experts predicting it may continue in the foreseeable future, primarily due to the Bank of England\’s increased interest rates. In September, we noted a 17% increase in insolvencies from the previous year, totalling 1,967 company insolvencies. This figure surpasses levels observed […]
Flybe – What Happened?
Flybe recently collapsed for the second time in (just) under three years. As with its first collapse, the pandemic will be publicly blamed. Also as with its first collapse, this is very far from being the whole truth. Flybe’s second collapse happened for much the same reasons as its first collapse. Those reasons go way […]
How Employees Can Prepare For Business Bankruptcy
One of the cold, hard truths of the current economy is that nobody’s job is safe. What’s more, nobody should count on being given plenty of notice before they are made redundant. If an employer goes bankrupt, employees may only find out when the general public does. Likewise, you should not count on being given […]
Understanding Company Bankruptcy
It’s definitely not just individuals who get into financial trouble. Companies went out of business from time to time long before COVID19 (and Brexit). The course of the pandemic has seen many of them fail already. The path towards the “new normal” may see even more fall by the wayside. With that in mind, here […]
Understanding Company Voluntary Arrangements (CVA)
Company Voluntary Arrangements are essentially a “light-touch” form of business insolvency. They were introduced in 1986 and have been in regular use ever since. Currently, they are back in the spotlight as businesses of all sizes try to find a path forward. Here is what you need to know about them. The basics of CVAs […]
Why insolvency doesn\’t have to be so bad
Thankfully, insolvency has moved on a lot since the days of Dickens. Unless you’ve actively committed fraud, you’re not going to prison. In fact, you’re not even going to be under house arrest. You’ll certainly be living on a tight budget, but your basic needs will be covered. All-in-all, therefore, modern insolvency has stopped being […]
The Basics of Bankruptcy
Even in 2020, “bankruptcy” can be an uncomfortable word, at least as applied to individuals. It can certainly have uncomfortable repercussions. As a minimum, your credit record will be devastated. At worst, you could lose key assets such as the family home. All that said, however, part of the fear of bankruptcy can be the […]
Is bankruptcy common knowledge?
Bankruptcy is arguably a rather odd situation in that it is, in principle, public knowledge. In practice, however, it’s highly unlikely that anyone you know personally will find out unless you choose to tell them. Your existing creditors, however, will have to be told and, going forward, some service providers will either be told or […]