News and views

>>June 2005
42% of bankrupt are now women, almost a third more than five years ago.

>>May 2005
Bankruptcies for the first quarter of 2005 were up 25% on the corresponding quarter last year.

>>March 2005: Debt Loses its Fear Factor
Are we comfortable with debt, now that seemingly it's become the basis of our consumer spending-based economy? Have attitudes to business debt changed? Regardless, there's no getting away from the fact that companies aren't going to fail and individuals won't be filing for bankruptcy because they've got too much cash. A symposium by Decision Magazine and Armida Business Recovery began by considering the likely outcome of the combination of ever increasing lines of credit and the 'liberalisation' of bankruptcy brought about by the Enterprise Act. Click here for full details (Adobe Reader required).

>>July 2004
Survey reveals UK attitudes to enterprise. Click here for details.

>>May 2004
Bankruptcies increase 26.8% in the first quarter of 2004 on the same period last year. That is before the change in the law to relax bankruptcy regulations.

>>April 2004 - Enterprise Act 2002 personal insolvency provisions
The remainder of the Enterprise Act became law on the 1st April 2004.

The main insolvency features of this are: -

• The length of most bankruptcies is reduced from three years to one
  
• Equity in properties owned by a bankrupt must be resolved with the trustee within three years
  
• Some bankruptcy restrictions have been lifted such as being barred from being an MP whilst bankrupt
  
• The charges made by the Insolvency Services Account from insolvent estates have been simplified

  It is anticipated that numbers of bankruptcies will increase significantly in the light of the reduction in the term.

>> December 2003: Enterprise Act 2002
The corporate provisions of the Enterprise Act became law on 15 September 2003. The main features that affect insolvency include:

• Abolition of Crown preference – VAT and PAYE/NIC are no longer paid before other creditors
  
• Streamlined administration and out-of-court appointment of administrators make administration an option to protect and save smaller businesses
  
• Administrative Receivers cannot be appointed by holders of floating charges in almost all cases unless the charge existed before 15 September

Provisions relating to personal insolvency will come into affect on 1 April 2004. The most important provision is that the normal length of a bankruptcy will be reduced from 3 years to a maximum of 12 months.