Commercial Debt Collection: Challenges and Best Practices

Commercial debt collection is the process through which outstanding debts owed by commercial entities are recovered, typically stemming from goods delivered or services rendered on credit terms. In this blog, we’ll delve into the intricacies; exploring its significance, processes, challenges, and best practices. Understanding the Commercial Debt Collection Process At its core, commercial debt collection…

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DeTrafford Downfall: Collapsed Ventures and Investor Claims

DeTrafford

The recent financial collapse of multiple DeTrafford property development companies has significantly impacted investors. With failed projects and rising debts, the company’s future remains uncertain. As investors navigate the consequences, a glimmer of hope arises as we delve into bringing claims against third parties. In this article, we explore the troubled history of DeTrafford and…

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Appeal court win for company directors

The appeal court rejected BTI's claim upholding the notion that directors have no duty to consider creditors until insolvency is looming

The UK Supreme Court recently dismissed a claim for a law change that would force company directors to take creditors into account at the first sign of insolvency. Instead, the Supreme Court upheld the current law. As a result, directors only need to prioritise creditors when company insolvency is highly likely. Under the current ruling,…

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Mediation compulsory for County Court claims

The Ministry of Justice has announced plans for mandatory mediation sessions for small claims under £10,000. Compulsory mediation will be introduced into all County Court claims if the scheme is successful…

The Ministry of Justice (MoJ) recently announced plans to introduce compulsory mediation sessions for County Court claims valued under £10,000. Under the new proposal, defendants and claimants with small claims under £10,000 must participate in a one-hour telephone mediation. The court will allow 28 days for the phone call to take place after close of…

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The looming insolvency crisis

A record number of corporate insolvencies in the first quarter of 2022 suggest the corporate sector faces a crisis

Back in May, we warned that a wave of company failures would hit UK firms in the latter half of 2022. Just three months later, it appears the situation may be even grimmer than predicted. This week, reports revealed that corporate insolvencies were up more than 80% in the past quarter compared to 2021. This…

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How to avoid the debt tsunami

A rise in corporate insolvencies in 2022 suggests that business are facing a tsunami of post-pandemic debt

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…

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