Section 363 of the Insolvency Act 1986 grants the court a broad power to control the conduct of a bankrupt. This provision is pivotal in ensuring that the bankruptcy estate is properly administered, creditors’ interests are protected, and the bankrupt is prevented from frustrating the bankruptcy process. One recent example of the court exercising this […]
Crypto assets, such as cryptocurrencies and non-fungible tokens (NFTs), are increasingly treated as property under English law. While traditional assets fit neatly into the categories of “things in possession” or “things in action,” digital assets often fall outside these definitions due to their intangible nature. Recognition as Property English courts and legal bodies, including the […]
From 24 July 2024, section 125A of the Building Safety Act 2022 (BSA 2022) introduces specific notification obligations for insolvency practitioners (IPs) appointed in relation to responsible persons for higher-risk buildings or relevant buildings. This article explores the scope and implications of these obligations, which were added by section 119 of the Freehold and Leasehold […]
The concept of the “zone of insolvency” refers to a critical period in a company’s financial distress where insolvency is looming, but not yet inevitable. During this phase, the directors’ duties shift, placing a greater focus on the interests of the company’s creditors, rather than its shareholders. This shift is essential because, as financial difficulties […]
When a business faces unpaid debts, it can have a significant impact on cash flow and overall operations. Recovering debts efficiently is crucial for maintaining financial health, but many businesses make common mistakes that can hinder their debt recovery efforts. While chasing debts may seem straightforward, failing to avoid certain pitfalls can lead to prolonged […]
A shocking case recently highlighted how easily things can go wrong when debt collectors target the wrong person. Camelia Gonciulea, the owner of Twisty Pretzel bakery, was mistakenly chased for a staggering £24,000 in unpaid bills. Despite the error, she was told to pay £18,000 for an energy bill, with an additional £6,000 in interest. […]
Aggressive debt collection practices can have severe consequences for vulnerable people, as demonstrated in the case raised by Martin Lewis’ charity. Local councils, often responsible for collecting unpaid council tax, have been criticised for hiring third-party debt collectors who engage in practices that exacerbate financial and emotional stress. Vulnerable individuals, who may already be experiencing […]
As the cost of living continues to rise, many people across the UK find themselves unable to meet their financial obligations. Increasing energy bills, rent, and food prices have pushed households into debt, with some struggling to pay even their most basic bills. In these situations, individuals may feel overwhelmed by the mounting pressure from […]
In the world of insolvency law, two terms often come up when businesses face financial difficulty: receivership and administration. These processes, while both designed to deal with insolvency, differ significantly in their purpose, structure, and outcomes. For creditors, debtors, and insolvency practitioners alike, understanding the distinctions between receivership and administration is critical for determining the […]
