Business Recovery and Insolvency Practitioners

NEWS: Corporate Insolvencies Fall

Added: 04/12/2009

The number of corporate insolvencies decreased by 4.7% in the 3rd quarter of 2009. As a consequence in the 12 months to the end of September around 1 in 114 companies had entered into a mode of insolvency, compared to 1 in 120 in the previous quarter.

As referred to in previous articles, the H M Revenue & Customs have been working with a great number of companies to defer Revenue payments and therefore as a result the figures may be somewhat distorted. It is our belief that when the H M Revenue & Customs starts to apply pressure, this will unfortunately result in a rise in the number of insolvencies during 2010 and 2011.

Individual Debt

The increase in company failures will almost certainly have a detrimental effect on individuals who are already struggling with debt.

Whilst the media suggests that the recession is about to end, in reality we believe that the real economy will be severely hit by the combined effect of several issues. Taxes will increase from April 2010, the increase in VAT comes into effect on 1st January 2010, with the possibility of an increase in interest rates following.

The number of people in England and Wales becoming insolvent during the third quarter of 2009 rose to a record 35,242 and experts are concerned that this could reach 130,000 by the end of the year, an increase of 28% over the same period in 2008. For those large numbers of people and companies who are concerned about their financial position it is imperative that they seek advices from one of the following:

Consumer Credit Counselling Services - Tel No: 0800 138 1111

National Debtline - www.nationaldebtline.co.uk

Citizens Advice Bureau (local office)

Alternatively you can seek help and assistance from offices like ourselves who are licensed by the DTI, members of R3 and other registered bodies. It is imperative that when speaking with a firm of ‘experts’ that you ensure that all initial meetings are free of charge and that they are qualified to give expert advice.

We appreciate that to deal with debt can be a very worrying experience and can affect not only your emotions but family and business colleagues. However, taking no action is not the way forward.

Corporate Insolvency, Personal Insolvency, Debt Help & Advice Specialists – Manchester, Yorkshire, Cheshire

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