As of the end of October, Business Insolvency UK had reached its highest levels since January 2019, exceeding pre-COVID levels for the first time. Insolvency figures compiled by the government agency, the Insolvency Service, show that 1,674 business insolvencies were registered in November. These insolvencies comprise compulsory liquidations, voluntary liquidations, and administration. These figures do not take into account company directors’ disqualifications.
How to Know About Business Insolvency UK
The new Act has introduced the moratorium. This is an interim period during which a business can continue to operate without facing insolvency proceedings. This time is known as the’moratorium period’. It offers a company up to 20 days of protection from creditor action. The moratorium can be extended early with or without the consent of pre-moratorium creditors. The new legislation has also implemented several restrictions to prevent the company from commencing insolvency proceedings.
Insolvency UK has four professional bodies, including the Insolvency Service. The Insolvency Service and these RPBs are governed by the insolvency legislation. The Insolvency Service is the main regulator of the insolvency profession. The aims of the service are to boost economic confidence, tackle financial wrongdoing, and maximise returns for creditors. The Insolvency Service is the oversight regulator for the industry.