Phoenixes and personal liability for the new company’s debts

Two of the major underlying themes of the UK insolvency legislation are the promotion of an entrepreneurial spirit amongst the business community, where reasonable risk-taking is encouraged, and a ‘rescue culture’ enabling businesses to be recycled quickly and efficiently when things go wrong.
One of the ’safeguards’ on these themes has received more prominence recently, even though the law in this area is over 20 years [...]

Antecedent transactions: A twist on Transactions Defrauding Creditors?

Under the Insolvency Act 1986, where an individual or a company gives something away for less than its full value, the transaction can be upset, provided the deal occurred within certain timeframes of formal insolvency.  The aim of the law is to restore the position to what it would have been in an attempt to be fair to the creditors. 
But there [...]

Debt and Insolvency Links

This is a list of links to site that you may find useful if you or your company has financial problems:

Blogs

http://insolvencyblog.com – this is the Blog of Chris Laughton, a partner in Mercer & Hole Chartered Accountants and editor of the R3 publication ‘Recovery’.  Chris’ site summarises the key technical issues touching personal and corporate [...]

Income Payments into bankruptcies in disarray

The Enterprise Act, brought in a few years ago, reduced the period of bankruptcy from three years to one, more often than not less than that.  Quid pro quo, the Official Receiver was given the ability to essentially force bankrupts to pay surplus income into the bankruptcy for three years.  The Insolvency Service’s own figures show that so [...]

Understanding the Official Receiver

The Official Receiver is now providing an insight into how he is likely to approach certain aspects of his work in dealing with the affairs of a bankrupt. 
If you go to the Official Receiver’s website at http://www.insolvency.gov.uk/ and click on the ‘Freedom of Information’ link on the right hand side of the page it will [...]

Divorce and Insolvency

While insolvency is unlikely to be an issue to worry Sir Paul McCartney and Heather Mills, divorce is a topic of major interest to Insolvency Practitioners! 
Recent surveys have shown that divorce is the most common factor in the lives of people with debt problems.  Divorce is often the main cause of insolvency of the [...]

CVAs: a repair kit for ailing retailers?

Many in retail are having a tough time, unable to offload underperforming sites. Last year, Powerhouse tried to reduce the closure costs on 30 of its poorer shops through an insolvency mechanism called a Company Voluntary Arrangement (‘CVA’). But did it work, and can it work for you?
A CVA is a legally binding agreement [...]

Personal Debt Levels – Christmas 2006

Here are some truly fightening statistics. 
We now owe £1.3 trillion in secured and unsecured personal debt according to the Bank of England.  http://www.bankofengland.co.uk/
If this were to be converted into £1 coins, the pile would encircle the English coastline one and a quarter times.  And with debt growing at £1 million every 4 minutes, that pile is growing at the rate of 28 miles [...]

Disclaimer

By using this blog, you agree that the information in it does not constitute legal or professional advice and is for general guidance only, may be changed without notice and is not guaranteed to be complete, correct or up to date.
Opinions expressed in the posts in this blog are those of Paul Brindley and are not [...]