IT’S WORSE THAN WE EXPECTED-UK INSOLVENCY UPDATE

IT’S WORSE THAN WE EXPECTED-UK INSOLVENCY UPDATE

In this video, we’ll be delving into the ever-evolving landscape of insolvency in the United Kingdom.
If you’re a business owner, creditor, or someone who simply wants to stay informed about financial trends, this video is a must-watch.

In the wake of the global economic challenges we’ve faced, it’s crucial to understand the current state of insolvency in the UK. We’ll explore key insights, statistics, and trends that have shaped the financial landscape up to this point.

Here’s a sneak peek at what we’ll cover:

Overview of Insolvency: We’ll start with a brief explanation of what insolvency is and its various forms, including liquidation and administration.

The Pandemic Impact: The COVID-19 pandemic had a profound impact on businesses and personal finances. We’ll discuss how government support measures and economic disruptions affected insolvency rates.

Economic Recovery: As the UK’s economy continues to recover, what does this mean for insolvency? We’ll explore the latest data and projections.

Industry Insights: Different sectors have been impacted in unique ways. We’ll take a closer look at sectors such as hospitality, retail, and finance.

Legal Changes: Recent legal changes and reforms, including those related to personal insolvency, have important implications.

Tips for Businesses: If you’re a business owner, we’ll provide some key insights and advice on how to navigate financial challenges.

Looking Ahead: What does the future hold for insolvency in the UK? We’ll discuss potential trends and challenges to keep an eye on.

Make sure to subscribe to our channel and hit the notification bell so you don’t miss any updates on this critical topic.
Whether you’re a financial professional, a business owner, or just someone curious about the state of insolvency in the UK, this video will provide you with valuable insights.

Join us as we break down the current state of UK insolvency, and don’t forget to leave your comments and questions below. We love hearing from our community, and we’re here to help you stay informed. Thanks for watching, and let’s get started!

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Okay it’s worse than we expected um here is a monthly update on the UK insolvency figures we it’s just been released the insolvency statistics since sep for September 2023 I’m doing this video in October 2023 so I just want to go through these there was in in September alone there was

1967 company insolvencies in England and Wales okay so that is 1967 company failers okay just under 2,000 out of those it was just over, 1500 creditors voluntary liquidations so liquidate the business the debts are written off the business is no longer there was 255 compulsory liquidations

Now let me tell you what a compulsory liquidation is when you’re liquidating a business there’s mainly two options you can do it the voluntary route which is always the best route for a responsible director but if a creditor has not been paid for some time and they’ve exhausted

All options of getting money off your company they’ll petition to wind your business up via the courts you get a winding up petition on your desk you get your day in court and if you can’t pay the money bang the ammer comes down and you’re compulsory liquidated uh the

Consequences are generally more severe for a director in a compulsory liquidation as opposed to a voluntary liquidation but there was 255 of them there was 11 company voluntary Arrangements what’s a company voluntary Arrangement it’s it’s called a CVA for short and it’s for businesses that are viable going forward but they’ve got

Some cash flow problems right now and and if you will it’s like a wall of protection around a company where they put all their unsecured debts into one pop and they negotiate well the insolvency practitioner negotiates with their creditors to pay these debts over an extended period of time generally

Speaking 60 months five years so let’s say I don’t know you’ve got half a million pounds worth a debt that’s due in the next 60 days uh you know next 90 days in a CVA hopefully you be able to restructure that debt over over sort of five years now in addition to that

There’s 125 administrations and administrations are a little bit bigger than the liquidations and that’s where an administrator’s called in and again it’s that layer of protection around a business until the administrators can figure a way out of it now overall in September 2023 they were 70 17 17 higher than September

2022 okay so you can see you know this I’m seeing this right now there are more people ringing up with problems you know covid happened yes it got rid of a lot of Deadwood so to speak but what you’re seeing now is businesses that had some wool on the back they were healthy

Businesses these three years ago but now they’re running out of Runway now if you’re a business in distress my advice to you is take advice early you do not have to call me we’re Fabulous by the way check us out on trust pilot but it’s important important you take advice

Early because the earlier that you seek advice with an insolvency professional the more likely you’ll get a better outcome for you your staff and your creditors I hope you found this video useful thanks for your time goodbye