News & Views

Third of firms risking insolvency by maximising overdraft

Up to a third of companies in the UK could be at risk of being declared insolvent as they are using the full amount of their maximum bank overdraft.

According to research by insolvency trade body R3, this is a steep rise from the 17 per cent figure that was recorded in the last quarter and is the highest it has been in a year.

President of the body Lee Manning stated despite the high level of firms in debt with their banks, there have not been the number of insolvencies that would have been expected.

"This could be down to a number of factors but will certainly have been influenced by a shift in creditor attitudes," he said.

Mr Manning pointed out confidence among companies in the UK is at rock bottom at the moment, while consumers do not have much spending power.

R3 also recently warned firms in financial danger to stay away from short-term high interest loans.

How Does The New Insolvency Practice Direction Effect Personal Service?

By Mark Hodgson, Managing Director, TREMARK Associates Ltd

As you may be aware the new Insolvency Practice Direction came in to force on 23rd February 2012.

There are a few changes and clarification concerning the personal service of statutory demands and bankruptcy petitions, particularly in situations where the debtor is evasive and substituted service is required in respect of a statutory demand.

Process servers and creditors need to be made aware that there is an expectation on them to go the extra mile before creditors are able to successfully issue a petition or in the case of a petition get an order for substituted service.

Process Server Guidance on Insolvency Matters

By Mark Hodgson, Managing Director, TREMARK Associates Ltd

Areas for consideration when personally serving Statutory Demands and Bankruptcy Petitions.

The new Practice Directions concerning Insolvency Proceedings came into force 23rd February 2012.

The Practice Direction contains procedural requirements relevant to all proceedings under the Insolvency Act 1986 and the Insolvency Rules 1986. In particular it affects Winding-up and bankruptcy petitions; and applications within existing insolvency proceedings, including the fixing of office-holders remuneration.

The purpose of this article is to highlight some of the key changes brought about by the new Practice Direction, and to provide a useful aide memoire to petitioning solicitors and process servers as to the important features of the Practice Direction, and its practical application when undertaking personal service of statutory demand and bankruptcy petitions.

Changes to Issuing Proceedings in the County Court

There has been a change in the Civil Procedure Rules, as from 19th March 2012 you must issue your legal actions (if it is for money), in the Northampton County Court.

With the court's services also scheduled to change in April, there has been a massive shake-up to the way in which we all use the court system.

Process Servers take issue with Legal Aid rates

Legal Aid_Sign TREMARK Associates have fully supported the Association of British Investigators who have taken issue with the Ministry of Justice over amendments made within 'The Community Legal Service (Funding) (Amendment No.2) Order 2011'

In 1994 the rates at which Process Servers and Investigators could charge for Legal Aid matters was £40.00 per hour. Much debate and displeasure had been made within the investigation and process serving community as Legal Aid rates had not been updated for almost 20 years, despite huge increases in the cost of petrol and the cost of living. This has resulted in many firms rejecting offers of Legal Aid funded instructions.

It was a rude awaking therefore when the 'The Community Legal Service (Funding) (Amendment No.2) Order 2011' came in to force reviewing process servers fees to.... £32.00 per hour or £28.00 per hour if your lucky enough to work in London!