Category Archive Insolvency: Bankruptcy

Construction Contracts Drop

The fall in the number of construction contracts has been evidenced by a 25% insolvency increase in building firms since the pandemic.

Escalating inflation, delays in significant infrastructure projects, a drop in the construction of new homes and the cost increments of materials are the chief culprits here.

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Insolvencies Rising

Creditors’ voluntary liquidations are up on pre-pandemic levels as are compulsory liquidations as customer numbers drop off and costs increase.

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Restaurants Going Insolvent Faster Than in Pandemic

The pace of restaurant’s going bust is relentless; currently at 159% greater than last year. Reduced days of operation are widespread.

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Insolvencies are Up

County Court Judgments greater than £5000 against businesses are up which can be a strong indicator of pending insolvency.

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Insolvencies Loom

When furloughs are finally exhausted a torrent of commercial bankruptcies are forecast. Many businesses have been weathering this financially tempestuous epoch hand to mouth relying on these financial packages for their sustenance.

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The Masters of the Rolls

On the 31st July 2020 the Prime Minister’s Office announced that Her Majesty The Queen had been pleased to approve the appointment of Sir Geoffrey Vos as the Master of the Rolls from the 11th January 2021 in succession to Sir Terence Etherton.

It is interesting to note that 6 out of 7 of the most recent incumbents of this judicial office have been of the jewish faith the others being Lords Woolf, Phillips, Neuberger and Dyson.

We find that jewish solicitors are often particularly sought after because of their perceived quality traits of intelligence, shrewdness, toughness and integrity.

If you are looking to find such a solicitor please do not hesitate to call us.

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Travel Transport Retail – Coronosolvencies

Travel, transport and retail organisations have contacted solicitors for preliminary discussions in view of their poor or non-existent trading environments. Restructuring, the raising of funds and reapportionment of debt are the services sought to stem the cash bleeds. Other sectors are forecast to follow suit as social distancing and lockdowns rise.

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London First for Property Investment Purchases whilst Restaurant Insolvencies Rise 20%

London is first for commercial property investments followed by Paris largely due to the expanding tech sector.

The UK restaurant sector however is facing uncertain times with nearly 1500 insolvencies in the year to July due to the large volume of establishments, poor customer attendance and increasing costs.

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Insolvency

Business insolvencies rose by almost 20% in the last three months of 2018 rounding off a year in which corporate insolvencies were up by 10% in total. Construction, then wholesale and retail followed by vehicle repair were the main sectors effected. More companies seem to be closing rather than restructuring.

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Statutory Demands Court Orders Bankruptcy Insolvency

Statutory demands are usually issued as a strong arm tactic to obtain funds from someone as the fear of an impending bankruptcy petition usually works. The courts do not encourage their use as a means of enforcing a judgement. Today the debt has to be in excess of £5000 for a petition to be issued. The demand can be made on any of the available forms as this will not effect its validity. After the demands service, by a process server, 21 days have to be allowed to give the debtor time to either pay or negotiate a settlement to the satisfaction of the creditor. A petition for bankruptcy has to be served within 4 months of service of the demand. The debtor can if good reason exists apply to the court to set aside the demand within 18 days of it service. However if the sum demanded is that which has been ordered by a court to be payed to the creditor and the debtor has applied for permission to appeal in good time or an appeal is underway then:-

Rule 10.24(2) of the Insolvency (England and Wales) Rules 2016 provides:-

‘If the petition is brought in respect of a judgment debt, or a sum ordered by any court to be paid, the court may stay or dismiss the petition on the ground that an appeal is pending from the judgment or order, or that execution of the judgment has been stayed.’

This is an important defence and may be sufficient to deter even the most litigiously well resourced creditor. However it should be noted that the mere issuance of a bankruptcy petition by the court has the effect of a notification being sent by the court to the Chief Land Registrar who will make entries to the effect on any Land Registry entries that the alleged debtor may have (i.e. property ownership) which will also effect any charges e.g. by mortgagors that are registered. Therefore a bankruptcy does not have to be granted, when full restrictions will be notified to the Chief Land Registrar, for entries to be made to the register that may subsequently need to be removed.

 

 

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