Facing the Reality of Rising Insolvency in 2025
April and May 2025 painted a blunt picture: more than 10,000 people in England and Wales entered insolvency last month. That\’s a 5% rise from the same time last year. That includes 648 bankruptcies, 3,783 Debt Relief Orders (DROs), and 5,583 Individual Voluntary Arrangements (IVAs). It’s not just households. In May, 2,252 companies in England […]
Implications of the Spring Statement 2025 for Debt and Insolvency
The Spring Statement 2025, delivered by Chancellor Rachel Reeves, introduces several fiscal measures that could significantly affect individuals and businesses dealing with debt and insolvency. Understanding these changes is vital for those seeking to manage their financial obligations effectively. Economic Growth and Public Finances The Office for Budget Responsibility (OBR) has halved the UK\’s economic […]
Is Your Business Heading Towards Insolvency? 3 Key Tests to Watch Out For
Even if your business seems to be ticking along nicely, it pays to stay vigilant. Financial trouble rarely appears overnight – it builds slowly, often hidden behind day-to-day pressures and short-term solutions. The earlier you spot the warning signs, the more options you’ll have to turn things around. At Adcroft Hilton, we work with business […]
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 […]
Rising Insolvencies – What SMEs Need to Know
The UK business environment has faced significant challenges in recent years, leading to a sharp rise in company insolvencies. In 2023, over 25,000 companies became insolvent, marking a 14% increase from the previous year. Although there was a slight 5% decline in insolvencies in 2024, with 23,872 cases recorded, the overall financial pressure on businesses […]
Shareholder Agreements in Insolvency: Protecting Interests in Difficult Times
When financial difficulties arise, a well-crafted shareholder agreement can play a crucial role in safeguarding the rights and interests of shareholders. While not legally required, these agreements outline shareholder rights, duties, and dispute-resolution processes, acting as a private contract that supplements the company\’s articles of association. Importantly, they can offer guidance on how to proceed […]
The Latest Insolvency Statistics: What They Mean for UK Businesses
The recently released insolvency statistics for August 2024 show a continued trend of financial difficulties for many UK businesses, but also highlight opportunities for recovery. According to the data, 1,953 companies entered insolvency during the month—9% fewer than in July 2024 and 15% fewer than in August 2023. These figures, while lower than in previous […]
Understanding Insolvency for a Company Limited by Guarantee
If you\’re unclear about what a company limited by guarantee (CLG) is, or what occurs if it becomes insolvent, this article will clarify these points. A CLG differs from a company limited by shares, where shareholder liability is limited to their capital investment. Governed by the UK\’s Companies Act 2006, CLGs include entities such as […]
A Guide to Business Recovery Options For Insolvent Businesses
If your company is facing financial difficulties, it\’s crucial to have a clear understanding of the various business recovery options available. Should your business require urgent support, it is advisable to contact experienced insolvency practitioners without delay. In 2023, the total number of company insolvencies reached 25,158, the highest since 1993 and a 14% increase […]
Cash Flow Challenges
Navigating through cash flow challenges is a dynamic and ongoing process for any business. Here’s a strategic seven-point plan to help you maintain equilibrium in your company’s finances and ensure continuous growth. Forecasting: Keep your cash flow forecast current to identify potential issues swiftly. This forward-looking approach is crucial for proactive management. Cost-cutting: Get creative […]