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The Insolvency Service has released figures which show that nearly 88,000 Individual Voluntary Arrangements (IVAs) were registered in England and Wales in the course of 2022. This represents the highest figure since 1990, when records began. So what are IVAs, why have they increased so much, and what might it mean for you as a creditor? What Is an IVA? Introduced in 1986, an IVA is a formal alternative to bankruptcy

The cost of living crisis is hitting people in a wide variety of ways, and recent research has illustrated another. In the twelve months since January 2022, the number of people seeking help with their debts has increased more than threefold — and most cite rising prices as the main reason. The Rise in Debt Enquiries A survey was carried out by debt advisor MoneyPlus Advice, after they saw initial enquiries rise by 3

During 2022, a combination of soaring prices (especially energy prices) and income lagging behind pushed the economy into recession. The bad news is that, according to forecasts by KPMG, the recession is likely to last for the rest of 2023, with output falling by 1.9%. So why are things so bad, and what’s it likely to mean for you and your business? What’s Causing the Recession? The main driving force of the recessio

While more traditional insolvency procedures — e.g. Company Voluntary Arrangements (CVA), “pre-pack” Administrations and Schemes of Arrangements — are sometimes the best way forward, they can have disadvantages. Winding a company up isn’t always in the best interests of the creditors, any more than the debtor, but there has often been little choice. However, in 2020 a new approach was introduced — Restructuring Plans

When we set up a business, we’re not thinking of having to close it eventually. The reality is, though, that most businesses do eventually close, even if it’s after a good run. However, there are right and wrong ways of going about it. Why Might You Need to Close Your Business? It’s a sad statistic that a fifth of all businesses close within a year of being launched. There are various possible reasons. Maybe they hav

Cryptocurrencies, like Bitcoin and many others, have being growing in popularity for several years, but have posed a challenge in several legal areas. This has included insolvency laws. After all, how can you include as an asset something that’s not only non-physical, but also anonymous? However, English law has recently started trying to define cryptocurrencies as assets, so what does that mean for insolvency law? T

If you’re applying to the Insolvency Service for either a Creditors’ bankruptcy or a Company liquidation against someone who owes you money, a deposit is charged. This may or may not be returned, depending on the assets available. The charge for deposits has been stable since 2016, but next month it will be rising substantially. So what does this mean, if you’re considering applying? What Are Petition Deposits? If al

Any legal document requires close scrutiny before you sign it, and this is certainly true of a commercial lease. The ideal solution would be to have the agreement drawn up by a commercial law solicitor working for you, who’ll ensure there are no nasty surprises. Often, however, your landlord will present you with a ready-made agreement. Most landlords won’t be trying to cheat you, but the agreement will have been dra

Two years ago, the government enacted Part 26A of the Companies Act 2006. The aim was to offer protection for companies during the Covid-19 pandemic, allowing the option of arranging a sanctioned restructuring plan. This includes the possibility of a moratorium on the company’s debts. However, one aspect of this not specifically covered by the Act, and not previously tested in court, is the position of third-party gu

UK businesses are facing a wide range of challenges at the moment, but one of the leading issues is disruption to supply chains. Whether this is caused by the ongoing effects of the Covid 19 pandemic, the problems arising from Brexit or the war in Ukraine, either you or one of your suppliers might be running into serious difficulties. So how can you balance the need to nurture your business partners with the importan