Insolvency Practitioners know that both Individual Voluntary Arrangements(IVAs) and Company Voluntary Arrangements (CVAs) are great ways of saving businesses, getting them back on the right track and as a result preserving value for all stakeholders.
As we all know, the UK public voted to exit the European Union. Now every business, big or small doesn’t quite know what to expect from the decision. As the country goes on negotiating with the EU, small businesses, especially those whose supply chain reaches outside of the UK, have to embrace an undefined future. But what does that really imply to your small business?
As a creditor, you will undoubtedly encounter many different financial situations that put your investments and cash flow at risk. It is your duty (and in your best interests) to protect yourself from potential hazards and to arm yourself with a plethora of knowledge relating to potential situations that could arise concerning the business you are crediting/supplying a service too. Understanding the various laws and legal practices surrounding business operation will allow you to stay ahead of the game and ensure that you receive what you are owed.
One particular form of business that you may have heard of is the Phoenix Company - The formation of this type of company as you will see can drastically affect your ability to regain owed debts. Due to this factor, it is hugely important to understand exactly what this type of company is, and what implications its creation can have for associated creditors.
2016 will be mentioned in history books of the future; depending who the authors affiliate with, and what will happen when it's all over, Brexit and its repercussions will be either glorified or vilified. But so far, almost a year later, 2017 has been a year filled with uncertainty for everyone. Ongoing political instability, like a noxious pandemic, is hitting grass-root start-ups and SMEs alike.
A poor economic climate has seen many companies cutting their losses before things get any worse. The last quarter of 2016 and the first of 2017 saw a huge leap in business insolvencies; the issue over tax rate increases making up the minds of anyone wavering. So catastrophic have the changes being that some say it's comparable to the aftereffects of WW2. So, if your business looks to be in trouble, take some comfort in knowing you're not alone.
Deciding to liquidate a company isn't always an easy choice, especially for smaller businesses where there's often a tight-knit team including family members and employees who've been there since the doors first opened. There's no corporate team going to whiz in and take over, give people their notice periods and a cheque to sweeten the blow; to deal with creditors, sell off assets for their worth or more.
No, when you're a small business, at times like this, you can feel extra small. The responsibility weighs heavy. Many feel tempted to simply walk away, or they bury their heads in the sand. The final insult being that they feel they can't even afford to go out of business in a dignified manner because they can't afford an insolvency practitioner to perform the task. And so they let things slide into the gutter until they are forced into compulsory liquidation by their creditors. The end.
How do the upcoming changes to insolvency rules affect creditors after April 2017? - 20th February 2017
A new set of rules is set to land on the 6th of April 2017 that will alter the direction and process of insolvency practice. This comes as an extremely welcomed change as the rules have remained relatively untouched since 1986 and the creation of the insolvency act. These changes have been carefully crafted by the government in collaboration with members of the insolvency profession, and have the mark of approval from the IRC (Insolvency Rules Committee). What can we expect from the revised set of rules? How will they affect procedures? What affect will they have on creditors and practitioners alike? Although the rules are listed in-depth in a 446-page document, the below summarises the key points:
In the world of business, there are many different legal injunctions and petitions that can be raised against an organisation that is experiencing financial problems. It is important that you fully understand the implications of any such petition, how to deal with it, and what it could potentially mean for the future of your business. Once such legal injunction is the winding up petition – Read on to understand the principal behind this legal term and how it can affect your business.
Thousands of nominations have been received from the public for The British Muslim Awards 2017, which is testament to breadth of talent and success, making it apparent that British Muslims across the nation are waving the flag of success.
It wasn’t long ago that BHS, the department store from our childhood, went bust. Now, there’s another problem—a pension deficit. What this means is essentially BHS can’t afford to pay out the required pension to its former employees. Philip Green bought BHS in 2000 and since then his record of managing the business has been somewhat patchy to say the least. The pension deficit is just another thing to add to the seemingly never ending saga.
Having your employer go into liquidation or administration is something that no employee wants to happen. Usually it’s the fear of the unknown in these circumstances, and that’s normal, but it’s also incredibly important, more than ever, to know exactly what your rights are and what you’re entitled to claim.