A challenge to Ireland’s arcane insolvency legislation might well be made to the High Court in just weeks, in line with a newly released story in The Sunday Independent by Maeve Sheehan. This is certainly an amazing development if a challenge is made because of claimed breaches of the constitutional rights of people looking at bankruptcy. It would be truly astonishing if this might happen and turn into the prompt for reform of the legislation and also the launching of fresh laws on individual personal debt in addition to debt codes. It might be unfair to accuse the new Fine Gael – Labour coalition administration of sitting on its hands on this question, given the inertia and inaction of the former Fianna Fail – Greens administration, that couldn’t manage to get thier combined minds round the idea of personal debt forgiveness. The new administration has had many significant sovereign and banking money issues to cope with but it is now time to deal with business that would help the individual citizen. Continue reading
Fall in levels of Insolvency
In recent months I have written on the dramatic growth of personal insolvencies in the UK over the last decade and of the reasons behind this growth. That is to say it was primarily down to the explosion of availability of credit and other economic factors. I have suggested that it will only get worse before it gets any better. Then earlier this month the third quarter statistics were released by the government’s Insolvency Service. They showed that for both forms of personal insolvency, bankruptcy and individual voluntary arrangements, there has been a fall. Continue reading
Banks and Treating Customers Fairly
The UK’s big five banks recently reported huge half year profits to the City and are projecting profits over £40 billion for the full year. I don’t want to sound like Gordon Gecko but “profits are good” and these profits could be construed as good news of a buoyant economy. Sadly however this is against a backdrop of falling house prices, rising interest rates, high levels of household debt, house repossessions up 30% on last year and inevitably an increase in the number of individuals seeking help with debt problems. Continue reading
How Debt Can Affect a Family
If you, your partner, or both of you are struggling with debts, it can affect the whole family and become a very harrowing experience for all. The effects of debt can cause stress, depression, anxiety and even aggravation of various physical illnesses too. The only way out of the problem is to communicate and work together to solve it, or seek help from an advisor.
Continue readingGrowth in Personal Insolvencies in the UK
Growth in personal insolvencies (bankruptcies and IVAs) has been dramatic over the past decades in UK. Continue reading
Taboos surrounding Insolvency, IVA’s and Debt
The past decade has experienced a huge growth in the number of personal insolvencies – Back in 1998 there were less than 30,000 per year. In 2007 it is likely that over 145,000 will be declared insolvent. To put this in context that equates to the entire population of Oxford for the year or 400 people each and every day. This growth has given rise to many myths and misconceptions as to the reasons behind the growth. Continue reading
CVAs and Self Employed Businesses
Last month I described administration and how it affected Leeds United. In order to save the club from liquidation* the administrator propsed a company voluntary arrangement (CVA). Under the proposal, the club would be sold back to a consortium led by the majority shareholder Kent Bates, and the sale proceeds (after deduction of the costs of administration) would be distributed to unsecured creditors. Continue reading
Insolvency & Administration
Leeds United fans will have followed the current crisis at the club with great interest. Most football fans have heard of Administration and know that any club choosing this path will be automatically deducted 10 points. However, how many fans know exactly what it means and what are the implications? Continue reading
Self Employed workers and IVAs in the field of construction/property
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
Self Employed Workers and IVAs
Over the past few months there have been numerous press articles concerning the increasing level of personal insolvencies and in particular Voluntary Arrangements (IVA’s). IVA’s were introduced in England and Wales in 1986 followed by Northern Ireland in 1989. Initially, they were aimed specifically at trading businesses and the self employed but are now most commonly used by individuals who have amassed uncontrolled levels of unsecured debt. Continue reading