Insolvency Service adjusts IVA payment rules

Insolvency Services urges insolvency practitioners to consider cost of living crisis in IVA procedures

The Insolvency Service is to overhaul the Individual Voluntary Arrangement (IVA) regime in the wake of the cost of living crisis.   Individual Voluntary Arrangements are legally binding court-approved agreements that people make to pay all or part of the debts they owe. An IVA is a statutory insolvency procedure managed by an insolvency practitioner…

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Beware of the mini-bond market

Mini-bonds are unregulated by the Financial Services Compensation Scheme

A mini-bond is a niche type of unregulated investment that you don’t hear about too often. But here at I&L, we like to discuss topics that will help to protect and educate our clients. As a result, mini-bonds is the focus of this post. So what exactly is a mini-bond? Mini-bonds are a form of…

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Police and financers warn of online bank fraud

Lobby group UK Finance note a record increase in the amount of money UK customers lost to online bank fraud in 2021

Bank customers lost a record £1.3 billion to online scams last year, according to lobby group UK Finance. In 2021, investment fraud accounted for nearly one third of losses, with the promise of high returns enticing potential victims. UK Finance’s Annual Fraud Report notes that scammers are aware that pension freedoms have given over-55s access…

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Prepare for the zombie company storm

Zombie companies harm other businesses because they trade while insolvent

Directors and business owners should expect to see the beginning of the pandemic fallout during the second half of 2022. Currently, Britain’s economy is operating with a dangerously high number of zombies, insolvent companies that: Earn just enough money to continue trading Are unable to pay off their debt This miserable and worrisome situation is…

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Is the director disqualification process futile?

There is no evidence that disqualification is sufficient punishment for a devious company director

In March 2022, P&O Ferries’ chief executive Peter Hebblethwaite brutally dismissed 800 workers without the consultation required under UK law. His actions led to the press and people on social media demanding consequences for such insensitive and potentially unlawful actions. Additionally, the government agency responsible for investigating director misconduct, the Insolvency Service, has commenced civil…

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Dark Side of Liquidation

Support for unsecured creditors in liquidations is scarce

When a limited company enters liquidation, for whatever reason, revenue from the sale of the company’s assets is redistributed amongst creditors and shareholders in order of priority.   The director’s powers cease and an insolvency practitioner (IP) takes over managing the company’s affairs. The director no longer has any control over the company or its…

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