Insolvency
Five Mistakes Directors Make Before Insolvency
The Director’s Loan Account Knowledge Centre: How small decisions create big problems Overdrawn Director’s Loan Accounts rarely become problematic because of a single event. They usually develop through a series of everyday decisions made over many months or even years. When a business is trading well, those decisions may appear harmless. However, if the company’s…
Read MoreThe Director’s Loan Account Trap
The Complete Guide for Company Directors Introduction Most company directors understand cash flow, sales, and profitability. Far fewer understand their Director’s Loan Account (DLA). That is hardly surprising. For many owner-managed businesses, a DLA develops gradually through everyday transactions. Money is withdrawn, personal expenses are paid through the company, or temporary drawings are taken with…
Read MoreHow to avoid the debt tsunami
According to the Insolvency Service, there was a 115% increase in corporate insolvencies last month, compared to the same period in April 2021. The increase from 925 registered cases follows the phasing out of the temporary insolvency measures brought in to protect companies from creditor action during the pandemic. The insolvency industry had warned of…
Read MoreIncrease in IVAs and personal insolvencies
Personal insolvencies increased dramatically in the first quarter of 2022, according to the latest Government figures. Between January and March, the Insolvency Service reported 32,305 personal insolvencies, 14% more than during the first quarter of 2021. Clearly, the effects of the Covid-19 lockdowns are in full swing. Serious financial downfalls are to be expected as…
Read MoreSolutions for profitable but insolvent companies
If you’re the director of an insolvent but profitable company, now is the perfect time to consider your options. Why? Because the Government recently lifted restrictions placed on the insolvency regime to combat the economic fallout from Covid-19. Over the past two years, a lot of companies used these restrictions to stay profitable by avoiding…
Read MoreHow to challenge a statutory demand
Company directors, business owners, and individuals can expect to receive more statutory demands in 2022 compared to previous years. Why? Covid-19 has forced many people and companies to give more credit than usual, and making a statutory demand is the first thing they’ll do when attempting to recover overdue debts. A statutory demand is a…
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