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Insolvencies are on the rise. 2023’s company insolvencies were the highest since 1993, with the level of Creditors’ Voluntary Liquidations the highest since at least 1960. Company Directors are normally protected from personal liability in these cases — as long as they follow the rules. Failure to do so, however, can have serious consequences. The Rise in Company Insolvencies Over 25,000 companies entered insolvency

Businesses haven’t had it easy over the past few years. Brexit, Covid, international crisis, inflation — they’ve all taken a chunk out of businesses, especially small ones. The recent Budget has made things even more difficult. In a recent survey, nearly a third of business said that they believe they’ll need to make redundancies next year, with a similar number expected to be forced to default on debts. What Has Cau

If you’re a small business owner, you don’t need me to tell you that times have been hard for the past few years. It’s easy to assume things are improving now. After all, both inflation and interest rates have been falling this year. Unfortunately, very little of this gain seems to have been passed on to SMEs. So why is this, and what can you do about it? Fall in Inflation and Interest Rates Inflation in the UK hit a

Of the various approaches you can take to recover money owed to you, applying for a bankruptcy against your debtor is perhaps the most extreme. While individuals who owe money they can’t repay may declare themselves bankrupt, a creditor owed more than £5,000 can also apply for a Bankruptcy Order. When to Apply for a Bankruptcy Order You can apply for a Bankruptcy Order if an individual owes you money you can

Bankruptcy is often seen as a badge of shame, a sign of failure — but is it really? The legal state of bankruptcy was actually introduced in the 19th century as a protection for debtors, who could previously have been thrown into prison until their debt was cleared. So is bankruptcy the end of the world, or should it be seen as a tool that can be used to get back on your feet when things have gone seriously wrong? Wh

Traditionally, people have always been terrified of “the bailiffs”. They’ve been seen as people who can descend on you and use strong-arm tactics to seize your property and leave you destitute. That’s a very Dickensian picture, and while it may have once been true, enforcement officers (as they’re more correctly called) are carefully regulated today. And a recent survey showed that 83% o

The last quarter of 2023 saw the UK going formally into recession, and that’s bound to affect the mood among small businesses. It’s not a coincidence that a survey by the Federation of Small Businesses (FSB) found that businesses felt more pessimistic during Q4 than Q3. Lower Levels of Optimism Among Small Businesses The FSB’s Small Business Index for the final quarter of 2023 found a reduction in s

Recent economic news seems to have been an improvement on last year, with inflation and interest rates holding steady. Two recent surveys by Novuna Business Finance, however, show that small business owners are still having sleepless nights about their position — and many fear that they may have to close within the year. Concerns Affecting Small Businesses 75% of small business owners have said that worries about the

None of us like to think of our companies facing insolvency, but unfortunately that can be the reality of business, especially at the moment. Record numbers of business insolvencies are being recorded, so it’s vital for Directors to be clear what they should and shouldn’t do — preferably before they’re faced with the choices. What Is Insolvency? Section 123 of the Insolvency Act 1986 sets out variou

An IVA (individual voluntary agreement) can be an invaluable resource for any individual person facing mounting debt. It offers the chance to protect yourself against action by creditors, and to structure repayments in an affordable way. However, like any financial product, there’s the potential for abuse. The Insolvency Service has announced that it’s investigating whether IVAs are being mis-sold. What i