What Are the Chances Of A Double Dip Recession?
Posted: 10/03/2010 Filed under: Bankruptcy, UK Fast Track Bankruptcy | Tags: Bankruptcy, business, business concerns, economy, insolvency Leave a comment »After the very positive log yesterday I decided to have a look at a few of the reports I had seen floating around that seem to be predicting what the are terming a double dip recession. Up until now I had avoided them because i can help thinking that few of the papers will be sad to see the recession with all its newsworthiness left behind. But I may be being slightly uncharitable. As I work quite a lot dealing with insolvency and bankruptcy I decided I should check out exactly what they mean by this double dip though I believe it is nothing terribly positive.
One report in the telegraph centered mainly on London based companies and the gist of it is that the London Chamber of Commerce and Industry (LCCI) has released a report that indicates that found that 47pc predicted a second economic dip. They were a bit vague on who they they was though which is always a concern.
On the bright side 51pc of the 184 respondents stated that they think the government can fix the deficit without ruining the economy. The LCCI seems to think this is a strong call from the business sector for spending cuts
“Businesses in the capital are bracing themselves for a return to recession or at the very best weak economic growth. The government needs to take heed and deal with the UK’s public debt to restore confidence in UK markets and keep businesses free from the burden of higher taxes and onerous regulation,” said Colin Stanbridge, chief executive of the LCCI.
Overall though, despite all the caution flying around and the deficit being the word on everyone’s lips, I stand by what I said yesterday, given how bad this recession was meant to be things are not looking too gloomy.
If you have been caught out by the hard economic times and are contemplating bankruptcy or insolvency don’t do anything until you have talked to us here at St Matthew’s eAccounting we can give you advice that is tailored to your situation.
One In Every 114 Businesses Bankrupt
Posted: 04/03/2010 Filed under: Bankruptcy, UK Fast Track Bankruptcy | Tags: Bankruptcy, insolvency, uk companies Leave a comment »While perusing the internet for information related to my area, I like to keep up to date, I came across the startling figure that in 2009 one business in 114 declared bankruptcy. Such a sad number. I deal with bankruptcy a lot in my professional capacity and I hate seeing how hard working business men can fail through no fault of their own. That it was this many in 2009 makes that year a particularly sad one as far as I am concerned.
The number was up from 2008, not surprisingly given the state of things. In 2008 the figure as one in every 150, quite a significant difference if you think about it.
To add to the depressing news the same article informed me that in 2009 , 134,142 individuals were declared insolvent, up from 106,544 in 2008. That means that in Britain last year one in every 320 people went bust.
New debt relief orders seem to have been very popular. Steve Rees, managing director, Vincent Bond and Co, says: “There‟s a growing trend towards debt relief orders (DRO‟s). Introduced into the market in April 2009, and after only 6 months, they made up over 10% of all personal insolvency procedures.”
“Expect to see growing numbers of personal insolvencies over the next 12 months, particularly Individual Voluntary Agreement (IVA) growth as the industry welcomes new IVA protocol.”
Here at St Matthews eAccounting we know how sensitive the issue of insolvency and bankruptcy can be. If you need to talk it over get in contact and we will tell you how we can help.
Personal Insolvency the Answer For Businesses
Posted: 28/02/2010 Filed under: Bankruptcy, UK Fast Track Bankruptcy | Tags: Bankruptcy, insolvency, uk companies, uk investments Leave a comment »It seems that personal insolvency is becoming more and more popular among business owners that want to get rid of debts but keep their companies afloat. A recent report in the Telegraph has indicated that many business owners have been putting their company expenses on their personal credit cards and then taking the rap with a personal insolvency solution in order to keep their company’s afloat.
Many economists feel that the leap in personal insolvencies that this has created has masked the number of businesses that have got themselves into financial difficulty during the worst part of the recession. In the third quarter of last year company liquidations were down 13pc while personal insolvencies jumped 28pc. This does seem to indicate that personal insolvency was being used as an alternative to declaring bankruptcy.
I certainly have a lot of sympathy for those people who have resorted to desperate measures in desperate times to save their livelihood and in many cases the the livelihood of their employees.
In my opinion the banks can take some of the blame for the fact that small business owners have been forced to resort to credit cards. There has been very few loan products with favourable terms around lately. If there had been then I am sure that many owners would have taken this more sensible route.
It can be easy to get yourself confused about the best solution for you when times start to get very tough. If you are having trouble working out how best to keep your company afloat or indeed if you have accepted that it is time to call it quits with bankruptcy then here at St Matthews eAccounting we can help you to do it right.
