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 […]
What Happens If Your Employer Becomes Insolvent?
When Brexit was announced, some businesses feared for their future. Then COVID19 hit and led to some businesses closing permanently. Now, the UK is working its way towards a post-Brexit, post-COVID future while the world is living through interesting times. This means that very few businesses can be considered truly safe from insolvency. With that […]
What is the Insolvency act 1986?
The Insolvency Act 1986 stands as a cornerstone of UK insolvency law, providing a structured approach for both business and personal insolvency matters. Here\’s a concise overview of what the Act entails: Company Insolvency: The Act outlines procedures for company insolvency, including CVAs, which offer an alternative to liquidation, allowing a business to continue operating […]
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 […]
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 […]
How to tell staff you’re bankrupt
Even though COVID19 and Brexit are now officially in the past, their effects are far from over. In particular, high inflation continues to rumble on and looks set to do so for the foreseeable future. This means that many businesses are struggling and for some, the struggle is too much and bankruptcy is the only […]
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. […]
How Company Directors Can Protect Themselves Against Accusations Of Insolvency Fraud
Given the economic situation around the world, it’s hardly a surprise that many companies are becoming insolvent. This includes many companies in the UK. The rise in insolvencies has led to a rise in insolvency fraud investigations. This means that all company directors should make it a priority to protect themselves from allegations of insolvency […]