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The options open for people who fall into debt have needed reform for some time, but the Covid-19 pandemic has made the issue urgent. The Money Advice Trust has now published a new briefing, urging the government to commission a full review of the options for debt management. The Debt Crisis The need for review of debt options was already being urged before this year. In 2018, the Money Advice Service (now part of th

Over the past six months, many businesses have had a false sense of security. A raft of government support schemes have been keeping them afloat — but these will be ending soon. So how devastating will the lockdown be on SMEs? The Insolvency Landscape It may seem strange that global insolvencies are actually down on last year’s figures. The UK is typical of this, with a fall of over 20%, in spite of so many hig

If there’s one thing that unites virtually all SME business owners, it’s the scourge of late payments. This is always a problem, especially for those operating on narrow margins, but the pandemic seems to have turned it into a crisis. The Scourge of Late Payments The great majority of SMEs don’t enjoy the huge cash reserves and almost unlimited credit enjoyed by the giant companies. If they’re

It’s a sad reality that in the coming months, as government support schemes for businesses wind down, we are likely to see a high number of companies going into liquidation. On occasion, this can be a planned, natural end to a business, but most often it’s forced on the directors by economic reality. So what exactly does liquidation involve? Solvent Liquidation There are sometimes reasons for winding up a

As you’re no doubt aware, in March the government brought in measures effectively preventing landlords from evicting tenants during the coronavirus lockdown. This was originally intended to run until this month, but the government has now extended the moratorium on evictions until 23rd August 2020. What Does This Mean for Me? One expected announcement that hasn’t materialised is that tenants would be gran

Insolvency — it’s a prospect every business owner has nightmares about, even if everything seems fine at the moment. But what leads to a business becoming insolvent, and how can you, as owner, see the signs that you’re at risk? Why Does a Company Become Insolvent? Insolvency can be the result of a company no longer being able to pay its way. It may be unable to meet its debts or have more liabilities than assets, but

Have you suffered from late payments by customers? If so, you’re not alone — research by the Federation of Small Businesses (FSB) suggests this is an alarmingly common problem faced by SMEs, especially when they do business with large organisations. Needless to say, this can be extremely annoying and inconvenient, but sometimes it’s a lot worse. If late payments are large and persistent enough, they can prevent your

Debts come in many shapes and sizes. Most of the debts I recover are owed to private businesses or landlords, but money can also be owed to public bodies, including council tax due to local authorities. But are these debts a special case? The Dilemma of Council Tax Debts Councillors in Wolverhampton recently launched a drive to recover thousands of pounds owed in unpaid council taxes, and are looking at possible stra

Personal debt is currently at a record high, which means that more people will be consulting debt advisors or insolvency practitioners. In general, it’s the best possible thing to do in this situation — as long as you’ve chosen a reliable advisor. The Current Debt Crisis As I reported in a recent blog, personal debt is at its worst level since the height of the economic crisis following the 2008 crash. With income ha

The country has been so busy lately arguing over the future of the UK economy that some disturbing signs at ground level have been largely ignored. Personal insolvencies are at their highest level since the worst of the economic crisis, while figures suggest that a staggering proportion of households are operating on a financial knife-edge. So what’s gone wrong? The Income Crisis According to figures from R3, the ins