Insolvency

How insolvency practitioners could actually save you from business debt

Each year, thousands of businesses in the UK face business insolvency. Insolvency means that you cannot afford to meet your financial obligations to your lenders before the debts are due. Insolvency can arise due to circumstances such as poor cash management, a reduction in cash flow due to an unforeseen expense, loss of business to […]

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Do I need to contribute more to an IVA if my financial situation improves?

An Individual Voluntary Arrangement (IVA) is a flexible debt solution that generally lasts for five or six years. At the outset, a licensed insolvency practitioner (IP) assesses your income and essential living expenses, and negotiates an affordable sum to repay creditors based on your financial position at the time. During the IVA term, however, it […]

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Watch out for changes to how we use notices of intention and validation orders

For years, companies have been able to legally stall or alter insolvency proceedings using notices of intention or validation orders. However, recent cases suggest that the way in which these two solutions are used is about to change. Here, we’ll explore how we use notices of intention and validation orders at present. Then, we’ll analyse […]

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Considering a pre packed sale? Know your legal responsibilities

What is a pre pack? Before we start, let’s be clear exactly what a pre pack sale is. A pre pack sale is a sale of a business that has entered into Administration, with the sale being effected almost immediately after the Administrators have been appointed – in most cases, this is usually the very […]

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Potential insolvency in the legal sector: the unique factors at play

Insolvency in the legal sector can be caused by a number of factors that pose unique problems for the firm’s partners and the insolvency practitioners. No industry is fully protected from the pushes and pulls of economic movement, but while some sectors consistently feature at the top of the breakdown of insolvencies by industry, such […]

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Pre-pack administration: an ethical minefield?

Since the financial crisis of 2008, pre-pack administration has been widely used as a way to save jobs and reduce the impact of insolvency on economic growth. Its controversial nature led to the Insolvency Service attempting to increase transparency, however, and reassure creditors that their needs were being met. Also known as ‘phoenixism,’ pre-pack administration […]

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