UK Businesses Under Severe Financial Pressure Amid Economic Headwinds
In the closing months of 2023, a staggering 47,000 UK companies found themselves teetering on the edge of insolvency, with a 25% surge in businesses grappling with \”critical\” financial issues, a recent study reveals. This worrying trend marks the second quarter in a row where critical financial distress has amplified by a quarter, according to […]
Reflecting on Debt and Insolvency in the UK: A 2023 Overview
Introduction The past year has been pivotal for the landscape of debt and insolvency in the UK. With the economy still rebounding from the effects of the pandemic and adjusting to new global challenges, 2023 witnessed significant developments in these areas. This article provides a comprehensive review of the trends, changes, and implications in the […]
Scheme of Arrangement
A Scheme of Arrangement can be a lifeline for companies aiming to restructure debt whilst maintaining their trading activities. It\’s an alternative to a Company Voluntary Arrangement (CVA) and different from other debt solutions like a Creditors’ Voluntary Liquidation (CVL) or administration. A Scheme of Arrangement is a court-approved process under the Companies Act 2006, […]
Dissolving a company with debts
Dissolving a company with outstanding debts is a topic often surrounded by confusion and concern. The formal process of closing a company, known as dissolution, involves removing the company from the Companies House register, either through a strike-off application or post-liquidation or administration. Legal Obligations to Creditors It\’s important to understand that creditors must be […]
Company insolvencies stay at worrying levels
The basic principle of company insolvency is much the same as personal insolvency. In short, it means a company is unable to make even the minimum payment on all of its various obligations. As with personal insolvency, there are different ways a business can go insolvent. All of them, however, create implications for company directors. […]
Debt Management For Small Businesses
Around the world, many small businesses are still struggling to get back on their feet after COVID19. In the UK, there has been the added disruption of Brexit. Unsurprisingly, this has led to many small businesses being forced to take on debt. With that in mind, here is some advice on debt management for small […]
Cost-of-Living Crisis & the Hospitality & Leisure Industry
It has been well documented that we are currently going through a cost-of-living crisis. With everyone tightening their purse strings, the effect this is having on the hospitality and leisure industry is catastrophic. When looking at finances, whether personal or business, usually the first thing that will go are things considered ‘luxury items’ such as […]
Personal Liability And Insolvency, What Company Directors Need To Know
One of the advantages of trading as a limited company (as opposed to a sole proprietor) is that, generally, company liabilities stay with the company. The protection from personal liability is, however, not absolute. It’s therefore important that company directors clearly understand where it applies and where it doesn’t. The basics of company liability vs […]
How You Can Protect Your Business From Insolvency
Right now, business owners are picking their way through a whole minefield of challenges. Most business owners will, therefore, probably be only too well aware of the potential for insolvency. With that in mind, here are some steps business owners can take to protect their businesses from it. Incorporate as a limited company If you’re […]
Dealing With Debt Threat Letters
In these days of email and social media it can seem we only receive two kinds of letters, greetings on special occasions, which we are usually happy to receive, and everything else, we’d quite happily live without, junk mail, some bills – and debt threat letters. Here are five tips on how to deal with […]