When Insolvent does not mean Insolvency

March 4, 2011

Section 123 of the Insolvency Act 1986 defines insolvency in two ways:

• The “cash flow” test of whether a company is able to meet its liabilities as and when they fall due for payment; and

• The “balance sheet” test of whether the company’s liabilities, including future and contingent liabilities, exceed its assets.

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More Pubs Bite the Dust

August 23, 2010

Another day, another pub closes its doors for good – or, according to CAMRA’s figures, another day, another six pub closures.

Pub and bar closures are, of course, not news; large numbers of pubs, particularly in rural areas, have closed in the last few years. Many blame the introduction of the smoking ban, exaccerbated by substantial increases in the duty on beer, as a result of which prices have increased by well above the rate of inflation.

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Another Travel Company Folds

August 13, 2010

Today’s news that travel company Sun4U has ceased trading, the second tour operator to do so in the last month, will come as a major shock for the many families who had been enjoying or looking forward to their no doubt much anticipated holiday.

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Consultation on Bankruptcy Reforms

August 11, 2010

The Government has published a consultation document on proposed reforms to the bankruptcy process, particularly benefiting over-indebted individuals who wish to take the step of making themselves bankrupt.

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Debt Management Plans Scrutinised

August 11, 2010

The Government has just concluded a consultation on debt management plans, particularly considering whether DMPs should be subject to tighter regulation.

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HMRC: Time to Pay Arrangements Continue

July 3, 2010

The Chancellor’s announcement in the Pre-Budget Report that HM Revenue & Customs’ Business Payment Support Service – the “Time to Pay” scheme – would continue for “as long as needed” was welcome news. The last thing that businesses need at the moment is to have this crucial lifeline swept away from them.

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Call for Greater Protection for Consumers

February 11, 2010

When a business fails, deposits or prepayments made by the public rank only as unsecured claims. Consumers have no greater protection or priority than suppliers or other trade creditors. The most high profile recent example of this was the collapse of Farepak, the Christmas hamper company, in 2006, when some £38 million of consumers’ money was largely lost.

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Gazing into the Crystal Ball

January 11, 2010

The consensus view of the economic pundits seems to be that the UK is at last emerging from the longest and deepest recession for decades. By common consent, both business and consumer confidence is certainly improving, but the recovery is fragile, and whether the recovery will be L-shaped, V-shaped, W-shaped or some other shape remains the subject of debate.

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