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Bankruptcy

Changes to insolvency law: Receiver or official receiver

As well as insolvency practitioners in private practice, a number of the new rules also affect the role of the official receiver and the number of insolvency cases they are involved with. Interim receivers It is often the case that only the official receiver will be appointed as interim receiver between the presentation of a bankruptcy petition and the making of a bankruptcy order, rather than an Insolvency Practitioner in most cases. This has changed under the new rules allowing the option of the official receiver or an insolvency practitioner as designated by the applicant. Whether there is a large uptake in creditors seeking to appoint insolvency practitioners into this role will remain to be seen.

New HMRC cash grab

Under new proposals announced in the Budget 2014 small print, the taxman will be able to access personal and business bank accounts to directly take any arrears of tax you may owe. How will it work? If you, or your business owes more than £1,000 in arrears of tax (inclusive of all forms of personal or business taxation), you could be at risk. Under new proposals due to come into force in April 2015, HMRC will be able to dip into bank accounts. They will not require a court order, nor will they have to issue formal proceedings – as long as they have sent reminders chasing tax arrears. So if you or your business owe more than £1,000 and have been sent correspondence from HMRC, under the new proposals, cash can be taken directly from your bank accounts to settle HMRC debts. HMRC will be required to leave a minimum of […]

Better off living in Middlesbrough than Newcastle?

The North East has the country’s highest rate of bankruptcies and IVAs. The Insolvency Service has released regional insolvency figures showing that Bankruptcies, Individual Voluntary Arrangements and Debt Relief Orders have shot up nationwide within the last 8 years. Total rate of insolvencies leapt from 7.2 per 10,000 people in 2000 to 30.9 in 2009, a four-fold increase, before falling back to 24.5 in 2012. Worryingly for the North East, it has been the region with the highest rate of bankruptcies and IVAs every year, for the past 5 years. By the end of 2012, 0.33% of the region entered into bankruptcy, IVA or a debt relief order, which was 35 per cent higher than the average for the rest of the country. Below is a graph showing the growth in personal insolvency in the country as compared to the North East. Table 1. Rates of personal insolvency (per 10,000 people). The North East vs […]