35% of banned directors abused Covid support

7 out of every 20 UK company directors who were banned during the first four months of 2022 were guilty of fraud or abusing the Government's Covid-19 support schemes

7 out of every 20 UK company directors struck off in 2022 were guilty of abusing the Government’s Covid-19 loan or job support schemes, shocking statistics reveal. Between April and May, the Insolvency Service disqualified around 36 directors following claims of abuse and fraud, which is staggering. Still, many individuals and smaller companies may never…

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Why chase failed SMEs for unpaid Bounce Back debt?

Why chase failed SMEs for Covid debts?

The Insolvency Service recently announced plans to investigate business owners who close down companies without repaying the government’s Bounce Back Loan Scheme (BBLS) debts. Considering the chronology of events, and state of the economy, such a strategy seems unjust. Here’s why… The implementation, abandonment, and then reinstatement of lockdown restrictions caught business owners, and most…

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Zombie companies in danger from Covid-19

The UK is home to tens of thousands of zombie companies that were going to fail irrespective of Covid-19

In an attempt to limit the economic fallout from Covid-19, the Government is rushing through parliament the Corporate Insolvency and Governance Act. The new legislation, which recently came into force, proposes a raft of debtor-friendly measures aimed at curbing company collapses. If we’re to kick-start the economy and stave off recession it’s essential that trade…

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Stat demands and winding-up petitions post Covid-19

• Statutory demands and winding-up petitions have been temporarily suspended to help kick-start the economy

The Government’s decision to suspend the filing of Statutory Demands and Winding-up Petitions is a huge blow for creditors seeking to collect payment of outstanding debts. As a result of the Corporate Insolvency and Governance Act, a creditor’s only debt enforcement remedies are through the county court via either a bailiff or a third-party debt…

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