Creditor’s Voluntary Liquidations

• Advertisements for the appointment of a liquidator increased by 4%, from 1,286 in August 2021 to 1,337 in September 2021.
• The year-on-year figures for the appointment of a liquidator increased by almost 75%, from 761 in September 2020 to 1,337 in September 2021.

Administrations

• Advertisements for the appointment of an administrator increased by 40% from 67 in August 2021 to 94 in September 2021.
• The year-on-year figures have increased by 8%, from 87 in September 2020 to 94 in September 2021.

Compulsory Liquidations

• Advertisements for the making of a Winding Up Order halved from 43 in August 2021 to 21 in September 2021.
• The year-on-year figures show a reduction of some 66% from 60 in September 2020 to 21 in September 2021.
• The number of Winding Up Petitions being advertised in The London Gazette in September 2021, 68, was considerably higher than in August 2021, 39. They are now higher than in September 2020, 63.
• With effect from 1 October 2021 creditors have been able to issue a Winding Up Petitions against debtors who owe more than £10,000

Insolvency numbers continue to increase despite the ongoing support given to businesses by Banks and HM Revenue & Customs. We attended a course recently whereby it was highlighted that HM Revenue & Customs will instigate recovery proceedings as a result of debtors not discussing their liabilities with HM Revenue & Customs rather than there simply being a debt outstanding.

We have experienced a large increase in enquiries over the last week or so and the general feeling amongst those businesses seeking our assistance is that there will be other businesses in a similar position. As discussed previously, maybe confidence is the driver behind this. The recent fuel crisis has not helped matters in certain industries.

A recent poll taken by one of the large accountancy firms concluded that a third of small businesses are worried that they will not be able to repay Covid loans. Additionally, new data from The Registry Trust indicates that 47% of businesses that became insolvent in May and June 2021 had an outstanding County Court Judgment against them.

If you have any clients that have any concerns about the future of their business or have received a County Court Judgment, we urge them to seek professional advice as early as possible. This will allow them to access the widest range of options and give them more time to decide how they will move forward. We offer confidential and independent advice with initial consultation free of charge.

In the unfortunate event that liquidation is required, we offer a low-cost liquidation service for companies with no assets and limited creditors. Our fee is fixed at £3,000 to include disbursements and VAT.

Solvent Liquidations

The number of Members Voluntary Liquidations since the pandemic have been significantly higher than in previous years possibly due to directors deciding to bring forward their retirement plans as a result of the uncertainty caused by the pandemic.

If you have any clients that are considering closing their business and retiring and require a solvent liquidation, we offer a low-cost fixed fee of £1,500 plus disbursements and VAT for straight forward cash distributions.

If you or your clients would like to discuss any issues arising from this article or any other insolvency issue then please do not hesitate to call us on 01246 959388.