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UK in the eye of the insolvency storm
Evidence is mounting that the UK may be at the mid-point of a W-shaped recession, insolvency specialists Phillips & Co are warning.
Helen Phillips, partner at the Buckinghamshire-based firm, says although the number of companies that failed in the July to September quarter showed a 14 percent year-on-year drop, we can expect a substantial rise in corporate insolvencies due during 2010 and 2011.
“A similar scenario has been seen previous recessions, and statistics confirm that insolvencies peak one to two years after GDP stops shrinking,” she said.
“Around 134,000 companies showing material signs of financial distress in the third quarter and 215,000 firms deferring payment of £3.79 billion in tax liabilities through the Business Payment Support Service, which is likely to stop relatively soon. Now is not the time for companies to rest on their laurels.”
Phillips & Co, who are licensed insolvency practitioners, say the best way to avoid financial disaster is to spot the warning signs early and ask for expert advice straight away, as this can mean the difference between staying in business and an uncertain future.
For more information please contact 01753 883315 or insol@phillipsinsolvency.co.uk
Struggling firms need to ‘close the stable door before the horse bolts’
Struggling businesses can save themselves from financial ruin by spotting the early danger signs insolvency specialists, Phillips & Co are advising.
The firm warns that more and more companies are facing financial difficulties every day, but that seeking professional advice immediately can mean the difference between improving a firm’s financial position for successful negotiations with HM Revenue & Customs or their insolvency.
The advice comes as government statistics show the number of UK companies becoming insolvent rose nearly 40 percent in the second quarter of 2009 compared to the same time period in 2008.
“Through our own day-to-day work we have noticed that the relaxed approach previously taken by HM Revenue & Customs is now being tightened up,” said Helen Phillips, partner at Phillips & Co.
“Additionally, the Business Payment Support Service (BPSS), which many companies are relying on, is likely to stop relatively soon – removing a valuable lifeline for struggling companies. Consequently, there has never been a more essential time for businesses to seek specialist professional advice if they face financial difficulties. We are only interested in working with companies with a view to possible turnaround or insolvency.”
For more information please contact 01753 883315 or insol@phillipsinsolvency.co.uk.
Podcast speaks out about Debt management
Helen Phillips, partner at Gerrards Cross based Insolvency firm Phillips & Co has recorded a Podcast on personal insolvency management.
Produced in conjunction with the accountancy network UK200 Group, the Podcast provides individuals with valuable information on how to deal with the issues of debt including advice on how to use the services of an insolvency specialist to solve debt problems.
Also covered in the Podcast is the topic of IVA’s, or Individual Voluntary Arrangements. Helen discusses in detail the procedure that would be taken if someone were to opt for personal insolvency, offering long term and interim solutions.
She goes on to discuss other options, in the event of insolvency not being appropriate, and explains how one can benefit from the services and advice of an Insolvency Practitioner.
Helen comments ‘Personal insolvency is rising throughout the UK. There are more people being made bankrupt, and more people voluntarily declaring bankruptcy.’ Being trapped within the rising debt culture to which Helen refers can often be a source of intense periods of stress. By recording this Podcast, Helen Phillips has offered some alleviation of this stress, allowing debtors to see a possible conclusion to their financial worries.
Helen is also able to offer guidance on options available to companies, in the event of corporate insolvency.
For more details on the Podcast, or on other areas of personal or corporate debt management contact Helen at Keen Phillips on 01753 886711.
Can Brown break Britain's bankruptcy cycle?
As Gordon Brown prepares to take his place as the new British Prime Minister, the many the changes that he will undoubtedly introduce should include a new and intelligent approach to Britain’s escalating bankruptcy problem, comments a local insolvency expert.
The recently released insolvency figures for the first quarter of 2007 show that over 30,000 people in England and Wales became bankrupt during this period. An all time record, this equates to 10,000 people a month going bankrupt.
Furthermore, the figures show that personal insolvencies are up by 24 per cent, almost a quarter, on the same period in 2006 when 24,274 became bankrupt or insolvent.
Helen Phillips of Gerrards Cross based insolvency specialists, Phillips and Co comments: "Over the last ten years, all of which Blair has governed, the nation seems to have adopted a culture which lives beyond its means. More and people are racking up record levels of personal debt and bankruptcy, lured into borrowing through an ongoing run of cheap, accessible credit.
"Following a long spell of nought per cent interest on credit cards, rates are now slowly rising and therefore it is important for people to stop spending what they don’t actually have."
Helen adds: "Although Labour has always expressed strong views about the perils of personal indebtedness it has still allowed it to accelerate at a worrying pace with uninterrupted growth.
"The worry throughout the profession is that as interest rates continue to increase, as well as house prices, Britain’s bankruptcy crisis is going to spiral out of all control.
"As such, it is crucial that along with the launch of a new Prime Minister and Chancellor, Britain adopts some new policies and strategies to try to break what may otherwise become an unbreakable cycle of bankruptcy."
Anybody who thinks that they may need professional advice concerning debt or bankruptcy should always consult a professional.
For more information please contact Helen Phillips at Phillips and Co on 01753 883315.
Borrowers beware as Britain battles bankruptcy boom
With a record number of personal bankruptcies reported in Britain during 2006, a leading local insolvency expert offers some advice on how to avoid becoming another victim of the British bankruptcy boom.
Recent reports showed that in 2006 more than 20,000 people were declared bankrupt in the three months running up to Christmas, making it the highest recorded number for a three month period since records began in 1960. Worse still, the overall figures revealed that a total of nearly 110,000 became insolvent throughout the year, topping the 100,000 mark for the first time.
The shocking figures are said to be the direct result of an unprecedented rise in house prices pushing consumers to take on more debt, increasing interest rates and reducing their ability to repay.
Helen Phillips, a partner at Gerrards Cross based licensed insolvency practitioners Phillips and Co, comments: "Amidst this growing ‘now culture’ whereby the supposed marvel that is ‘instant credit’ allows people to buy whatever they want instantly, without having to save or budget for it, people are racking up huge amounts of personal debt. In fact, it is now estimated that Britons currently shoulder a record 1.3 trillion pounds in debt.
"The problem with this, however, is the fact that people often find themselves struggling to pay it back and end up getting more credit to counteract this and so forth, until their finances spiral out of all control."
Helen continues: "Taking action against debt, however, does not necessarily mean becoming bankrupt. An alternative to filing for bankruptcy is to apply for an Individual Voluntary Arrangement. While IVAs can be more complex to apply for, they do hold much less of a stigma than bankruptcy and are a favourable option in the long term. If you own assets, IVAs allow you the breathing space to pay back your debts, which many people feel is a more honourable route, as well as saving your home."
If you feel you need advice regarding bankruptcy, always contact a professional licensed insolvency practitioner who is a member of one of the main bodies of accountants or lawyers.
For more information please contact Phillips and Co on 01753 883315.
Insolvencies hit 100,000 for the first time
Official figures show that the number of people going bust has passed the 100,000 level for the first time since records began almost half a century ago. Figures show that 107,288 people made themselves insolvent. Finance experts blame the huge jump soaring household bills, the rising cost of borrowing and new legislation that makes it easier to be declared insolvent.
The jump is likely to provoke concern that an increasing number of people are struggling to keep their heads above water amid rising debt levels and increased household costs.
Just days ago, the Council of Mortgage Lenders announced a 65% hike in the number of households who saw their homes repossessed during 2006.
And despite predictions that debt levels will now plateau, analysts believe 2007 could see up to 103,000 people become insolvent.
Despite the gloomy insolvency figures, there have been some indications that attitudes towards racking up debt are beginning to change for the better. The amount people are prepared to put on their credit card appears to be falling. |
