Top Service News
Top Service Ltd Response to National Insolvency Report: Monthly Statistics July 2021
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National Insolvency figures published (17 Aug 2021) by the Government’s Insolvency Service have indicated a 13% increase in business insolvencies in England and Wales compared to the number registered in the same month in the previous year (965 in July 2020), but 24% lower than the number registered two years previously (pre-pandemic; 1,442 in July 2019)[1].
Since the start of the first UK lockdown as a response to the coronavirus pandemic in March 2020, overall numbers of company and individual insolvencies have remained low when compared with pre-pandemic levels. As the Insolvency Service does not record whether an insolvency is directly related to the coronavirus pandemic, it is not possible to state the direct effect of the pandemic on insolvency volumes.[2] Although, it is likely to be attributed to government measures put in place to help protect businesses from insolvency, under the Corporate Insolvency and Governance Act (2020) (Coronavirus) including the restriction of statutory demands and winding-up petitions which have previously been extended on several occasions up until 30th September 2021. [3]
The Corporate Insolvency and Governance Act 2020 introduced provisions to the Insolvency Act 1986 which came into force on 26 June 2020. A moratorium forms part of a package of significant legislative reforms intended to enhance the UK’s restructuring and rescue culture. The changes allow breathing space for businesses in financial distress giving them an opportunity to explore rescue and restructuring options, free from creditor action. The process was designed to encourage companies to act earlier to restructure debt and improve a company’s chances of success.
The moratorium is focused on the survival of the company rather than the realisation of its assets, with a view to try to save the life of a company as a going concern by effectively allowing a payment holiday from its pre-moratorium debts while it looks to restructure[3].
According to the Government’s Insolvency Service main message for England and Wales (published 17 Aug) between the launch of the Breathing Space scheme on 4 May 2021, and 31 July 2021, there were 17,297 registrations, comprised of 17,098 Standard breathing space registrations and 199 Mental Health breathing space registrations[4].
“The true picture of the impact of company and individual insolvencies to the construction industry is likely not to be fully understood until the 12 months ending 2021. We advise our members to consider alternatives in their debt collection procedures for example, in response to reduced operational running of the courts, taking the opportunity to not send overdue accounts straight from credit control to legal action but using a third party in between will help save on court costs and the frustrations involved of taking legal action. We advise members to look at their options for collection, take advice from their collections service provider on the best course of action and consider all options, a one-step approach is not always the most effective.”
Emma Miller, Company Director Top Service Ltd
Post Insolvency Debt Collection Service:
We provide Insolvency Practitioners with a tailored end to end Post-Insolvency Debt Collection Service. We provide our service in collaboration with Silverback Commercial Law who offer competitive rates if legal action is required to recover monies owed.
What we offer:
- Free of Charge Ledger Consultation
- Collections Process with online access to live information on all cases
- Retention & Contract Collections
- Legal Action to Recover monies owed
- Dispute resolution
What makes us different?
- Our bespoke collection strategies mean that no case is treated the same. Our access to credit information and exclusive trading experiences enables us to change strategy quickly when our incoming intelligence is received, providing excellent results.
- Fast, effective collections. We know that speed is of the essence, so all collections are given top priority. We don’t just go through the motions, our experienced and highly skilled team members are adept at tricky negotiations, dispute resolution, tracing absconded debtors and thinking outside of the box to achieve tangible results.
- Fully compliant. We have been trading for 30 years and we have always taken compliance very seriously. We are authorised by the FCA and Top Service Ltd is a corporate member of the Credit Services Association (CSA). All senior Top Service staff are members of the Chartered Institute of Credit Management and collections professionals are hand-picked and trained to the highest standards.
- We have 30 years experience in collecting commercial and contract debts.
To discuss our Post Insolvency Collections Service with a member of our expert team please email insolvencycollections@top-service.co.uk.
Are you struggling to recover the money you are owed?
Contact our helpdesk team today on 01527 518800 to discuss how Top Service Ltd can support and help you protect your business.
[1] https://www.gov.uk/government/statistics/monthly-insolvency-statistics-july-2021/commentary-monthly-insolvency-statistics-july-2021
[2] https://www.gov.uk/government/statistics/monthly-insolvency-statistics-july-2021/commentary-monthly-insolvency-statistics-july-2021
[3] Top Service news: UK Corporate Insolvency and Governance Act: Moratorium
[4] https://www.gov.uk/government/statistics/monthly-insolvency-statistics-july-2021/commentary-monthly-insolvency-statistics-july-2021