Trading companies in difficulties

Are you suffering in the current economic climate?

Do you have a profitable core operation that is being damaged by the rest?

Do you have too many employees for the work coming in?

Will you survive if the Business Tax Deferment Scheme is cancelled or your participation in it is ended?

Send me an e mail in the first place on brendan.obrien@breezeandwyles.co.uk so that we can discuss your options.

Is 2010 likely to repeat 2009 for the retail sector?

There is a significant amount of evidence that the retail sector of the UK economy will suffer in much the same way as it did in 2009 over the forthcoming months. R3 the Professional Association of Insolvency and Turnaround specialists reported on 30 November that "Retailers should prepare for New Year bloodbath" based upon opinion from within their ranks see https://www.r3.org.uk/newsandpress/default.asp?page=1&i=4&id=330#PressStory.

However, news on the high street is that retailers have seen a much better christmas than was expected. Is that the case?

Good news of itself may mean much for the wider economy but creditors may see this as an opportunity to push for receovery through formal proceedings on the basis that post christmas the debtor is in the best position it is likely to be in for some time. The financial status of the debtor can only deteriorate as the market hardens for reasons such as: -

1. continuing rise in unemployment that leads to lower confidence meaning less spending on the high street;
2. where expenditure over the Christmas period being higher than epxected what available cash there will be to spend will be diminshed.

All of the above opinion applies to the supply chain to retailers. the example of which is the collapse of Woolworths. The failure of Woolworth's had ramifications beyond those directly involved in the business and estimates suggest that there were a significant number of knock-on insolvencies as a result.

With all of this in mind there is no better time than now to get some advice is the financial situation seems parlous. Failure to do so may limit the options available to you, your business or company as creditors become even more agressive in their approcah to recovery.

Insolvency: A new species of debt relief for debtors

On 6 April 2009 a new species of debt relief for debtors was created. Affecting debtors with low debts (less then £15,000), surplus income (disposable income of less than £50 per month) and assets (under £300). This is a cheaper option to bankruptcy and does not require the sanction of the courts.

With some similarity to the rules on bankruptcy this may be an avenue to Official Receivers and other appointees where there is limited funding available from the estate to cover the professional and other costs of recovery. Similar rules apply such as Debt Restriction Orders and Undertakings restricting the actions of the debtor during the period of the disability. In the same way with bankruptcy debtors period of disability can be extended if necessary where the debtor has in some way contributed to his/her financial situation.

If you would like to discuss about Insolvency & Corporate Recovery please contact Brendan O'Brien on 01279 715333.