Despite the record level of insolvencies in the UK, the Bank of England again has raised interest rates taking them up to 5.5% which is a six year high. It is expected that at least one more rise will take place this year as the bank attempts to keep a tight control on inflation. These increases are hurting businesses especially in the construction industry as the property market slows and first time buyers in particular feel the squeeze. Continue reading
Insolvency
Insolvency is the term given to a person or company that is unable to service their debts. Read our Insolvency Articles or get in touch if you need some Insolvency Advice.
Financial turbulence in the U.K. economy
My articles in previous months have been somewhat depressing and downbeat. This would be surprising to those that know me as by nature I am optimistic. It can be a fine line between optimism and naivety but there comes a time when even the most optimistic of individuals have to face reality.
In economic terms the reality is that the UK is facing its most difficult time in the last fifteen years. By most accounts whilst the UK economy is not in a recession, economic growth is stalling, high street spending is down, house prices are falling and there has been a decline in mortgage lending coupled with confidence continuing to spiral downwards. In the US several accounts suggest the recession has already arrived and Japan shows similar signs. Whilst the Federal Reserve chief Ben Bernanke says they are not currently forecasting a recession he did say that the outlook for the US economy in 2008 has worsened. With the global economy now so interlinked, these signs also do not augur well for the health of the UK economy. Continue reading
Reducing debts in an IVA
A fundamental precondition for being permitted to be accepted into an Individual Voluntary Arrangement (IVA) quite simply will need to initially be insolvent. Whilst there are different solutions for the insolvent debtor for instance bankruptcy, this assessment is going to simply look at the advantages and drawbacks of the IVA choice should you be unfortunate enough to find yourself in this difficulty. Continue reading
Challenges to the Irish State on the topic of Consumer Debt
It guaranteed to hit the ground sprinting and the new Irish Government will soon be a hundred days in office. It is fully committed to achieve a lot of adjustments and that being said perhaps now is the occasion to ask various concerns as to precisely what it is providing concerning the ordinary person as distinct from what it is working on in relation to finance companies, builders, NAMA and sovereign interest rates in its admittedly stressful initiatives to meet its committed EU and IMF performance targets. Continue reading
The Reason Why Bankruptcy in Ireland is Draconian
Time and money are generally major resources in almost any flourishing enterprise. These particular significant building blocks involve and conjure up concepts such as expenses, budgets, output, due dates, earnings funding and so on. The range really is limitless. The analogy with bankruptcy or in other words the legislation dealing with bankruptcy in Ireland springs to mind.
The primary criticisms of Irish individual bankruptcy law are that bankruptcy costs too much and it also lasts too long. Because of the need for the bankruptcy to be dealt with by the high court, costs of the order of £30,000 are the norm. What lender can afford that? Without having any possibility to check out the estate of the bankrupt in advance, what creditor will take a chance on petitioning for a debtor’s bankruptcy without any guarantee that properties and assets realized will take care of such enormous charges, much less begin to settle debts? Continue reading
Insolvency while Pregnant
Recently published figures estimate that the cost of rearing a child from birth to twenty one years of age can be up to £200,000. Let us suppose that you are in an IVA and become pregnant. The prospect of trying to sustain your IVA during your pregnancy and especially after the birth of your baby can be a daunting one. The undoubted joy of having a baby must be tempered with the reality that financial pressures will increase. Nevertheless, many debtors in IVAs have successfully overcome the challenges posed in these circumstances. Continue reading