According to new statistics released by the non-profit organization Registry Trust, there were 27,909 CCJs registered against businesses in England and Wales in the first quarter of 2014. This is a 6% decreased from the first quarter of 2013.
This is the second time since the turn of the century that first quarter business CCJs has fallen beneath 30,000.
The combined value of business CCJs in England and Wales also fell by 18% over the same period, from £290.8m in Q1 2009 to £105.2m in Q1 2014.
However, the Registry Trust said that the figures were “tempered” by recent statistics released by the Insolvency Service which show a 4.9% increase year-on-year in corporate liquidations between Q1 2013 and Q1 2014.
There were 3,721 corporate liquidations during Q1 2014 compared to 3,457 in Q1 2013. The compulsory liquidations accounted for 1,072 with creditors’ voluntary liquidations making up the balance of 2,649. Administrations and Company Voluntary Arrangements remained at a similar level of 537 and 142 respectively.
Bev Budsworth, an Insolvency Practitioner and MD of The Business Debt Advisor adds, “Businesses that have struggled through the recession but are not strong enough to compete with healthier businesses will find the going tough. Coupled with a tougher strategy from the Revenue on tax debt arrears which will see some businesses unable to cope. Winding up a business is always a very tough decision as this can give rise to personal debts as a result of personal guarantees having been given”.
There are deals to be done. Recent successes in dealing with Tax and PG debts by Bev’s team include:-
- Barrister with £250k of both tax debts and consumer debt obtains creditors’ agreement to 24p in the £ IVA over 5 years
- Directors with personal guarantee debts of just short of £400k get creditors to settle at 31p in the £ as a full and final settlement.
- Director and wife who invested in properties abroad which were never completed plus Revenue and consumer debts get IVA agreed at 12p in the £ on debts of £178k.
Bev adds, “These examples are low dividends, there are plenty of examples of higher returns as well. The deal very much depends on being able to demonstrate the offer is the best they can afford.”
If you have clients that are struggling and need help and advice, do give us a call on 0800 848 8036 or e-mail us at advice@thebusinessdebtadvisor.co.uk