Divorcee battles for home after husband’s bankruptcy

A woman awarded the proceeds of her matrimonial home in a divorce settlement had half taken away when her husband went bankrupt, the Court of Appeal was told today.

Wendy Haines, 43, is now battling with bankruptcy trustees in a case which has “far reaching implications” for orders made in the divorce courts, the court was told.

Ms Haines was awarded the detached five-bedroom farmhouse near Stourport-on-Severn in Worcestershire by a judge. Shortly afterwards her husband declared himself bankrupt.

His bankruptcy trustees are now claiming half the money from the sale of the house, the proceeds of which have been frozen, to help pay creditors.

A district judge awarded the jointly-owned property to Mrs Haines but the trustees contested the order.

The decision was upheld by a court in Birmingham in December last year, but Mr Haines’ trustees successfully appealed the decision at the High Court, which ordered Ms Haines to surrender half of the proceeds from the property.

Mr Kanghure told the court today: “The decision of the learned judge has far-reaching implications for the treatment of matrimonial orders made by consent or following contested hearings.”

He said that up to five years after a divorce settlement, should a husband be declared bankrupt, the wife will have no defence to an application by the husband’s trustees to set aside the order made by a matrimonial court


See Original Article

If you are facing bankruptcy for your business and you would like to avoid this then call us. We can help you get back in control of the debt and get the company back on track.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

The size of the debt collection industry has tripled in four years as thousands more people struggle to repay credit cards and loans. Each household now owes an average of £1,000.

When people are unable to repay what they have borrowed, banks sell on people's debt to professional debt collecting companies.

According to figures released yesterday by the Credit Services Association (CSA), which represents 95 per cent of the industry, the size of the debts these companies handle has almost tripled from £8.6 billion in 2003 to £22.7 billion.

advertisement

The problem is likely to increase as people are caught by the credit crunch.

Najib Nathoo, the president of the CSA, said: "Underlying debt has gone through the roof and lenders increasingly want to move any bad debt off their books."

Experts warn that the leap in debt-collection figures is likely to lead to an increase in personal insolvencies and bankruptcies.

Meantime, the number of people taking out a mortgage last month fell to its lowest level for at least five years, further fuelling fears of a housing market slowdown.

Just over 80,000 people took out a loan to buy a property in September — the fewest number to do so in a September since monthly records began in 2002, according to the Council of Mortgage Lenders.

The trade body said £12·7 billion was loaned for house purchases in September, well down on August’s £16·2 billion.

The slowdown comes as the full effect of five interest rate rises over the past year starts to hit the housing market, with the cost of a home loan shooting up and the credit crunch making it tougher to fund a purchase.

During the month, the average mortgage rate increased to 6·02 per cent from 5·91 per cent in August.

See Original Article

If you are struggling with debt in your company and would like help then call us now. We can help you keep the company and get back in control.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Thousands of companies both large and small have problems with debt. We at Debtsgone specialise in helping those companies. Our duty of care is to our client, not the creditors, which enables us to find the best solution for you.

If you would like more information then please feel free to get in touch. We don't charge for our service unlike our competitors who can charge thousands.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

HSBC writes off $38m a day in US loans and says it could get worsePatrick Hosking, Banking and Finance Editor
HSBC is writing off loans to struggling Americans at the rate of $38 million (£18.5 million) a day, it revealed yesterday, shareholders were told that the pace of souring loans could worsen if house prices in the United States fall further.

Defaults and late payments on US sub-prime mortgages and credit cards increased in the third quarter, leading the world’s second-biggest bank to take a provision of $3.4 billion against American consumer debt.

It wrote down $925 million from unsuccessful trading in credit securities and on leveraged buyout loans that it has extended but been unable to syndicate because of the credit crunch.

Knight Vinke, the rebel shareholder leading a campaign for boardroom and strategy reforms at HSBC, seized on the losses as evidence that the bank was too large and complex to be controlled properly.

HSBC expected to write down an extra $1bn Credit storm batters leading banks
However, traders marked HSBC shares 3 per cent higher to 866p as the bank said that it was trading strongly in most other areas of the business and that its third-quarter profits would be ahead of a year ago.

The bank said that revenues were growing faster than in the first half and costs were rising more slowly. It also said that it had virtually no exposure to collateralised debt obligations backed by sub-prime debt – the toxic securities that have affected many banks this autumn.

The latest provision brings to $12.4 billion HSBC’s total write-offs in US consumer lending in the past 15 months. Although HSBC prices in a relatively high level of defaults by sub-prime borrowers, the failure rate is roughly twice the level it would like.

HSBC pushed aggressively into sub-prime lending in the United States when it bought Household International, the leading player now renamed HSBC Finance, for $15 billion in 2003.

Eric Knight, founder of Knight Vinke, said of the Household deal: “I wonder whether it is something they are now deeply regretting. The magnitude of this is something HSBC doesn’t want to acknowledge.”

Douglas Flint, HSBC finance director and chairman of HSBC Finance, defended the acquisition: “To be in a credit distribution business in the world’s biggest credit market is not a bad place to be.”

The bank is closing another 260 HSBC Finance branches on top of 100 already shuttered, for a one-off charge of $55 million, leaving it with a network of about 1,000 branches. It also told shareholders that a change in the way in which it structures fees on credit cards in the US meant that income next year would fall by $225 million to $250 million.

Standard & Poor’s shaved HSBC’s outlook rating from “positive” to “stable” because of the problems in America.

HSBC has lent $178 billion to American consumers, of which $70 billion is unsecured. Of the unsecured portion, $45 billion was lent to sub-prime customers – people with impaired or nonexistent credit records. In the wholesale division, write-offs were split $760 million for credit trading losses and $175 million for write-offs on warehoused buyout debt. HSBC said that it had $3 billion to $5 billion of buyout debt on its books and was committed to lending another $4.25 billion.

Stuart Gulliver, head of the wholesale bank, said that the financial crisis was the worst since the Latin America defaults crisis of the 1980s and that he found the robustness of the equity market “really quite puzzling”. After stripping out bank shares, Wall Street was at an all-time high, he said. “Does that make sense? I don’t think so.”



See Original Article

If your company has debts and you would like help gettng them under control then drop us a line.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

The additional provisions will be made alongside a group trading update in an attempt to demonstrate that overall profitability remains strong.

advertisement
Unlike the investment banks that have written off almost $50bn in sub-prime loans, HSBC's exposure is directly through the mortgages held on its books. Its investment banking exposure is believed to be minimal.

Analysts expect bad debt provisions for the three months to September to rise 83pc to $2.52bn.

Credit Suisse estimates that the US division will report a quarterly loss of $492m.

HSBC chief executive Michael Geoghegan pledged in February to resolve the sub-prime problem within three years and declared: "The buck stops with me."

However, he is not likely to come under pressure from shareholders. One said: "He's not under pressure to walk because of this. It will just be a qualification of the sums involved as conditions have deteriorated since February."

Some analysts fear the problems will have spread from mortgages to unsecured lending as falling US house prices infect consumers' creditworthiness.

Antony Broadbent, an analyst at Sanford Bernstein, said: "Our fear is that there will be a big move in the unsecured book."

The shares fell 6½ to 842½p.


See Original Article

If your company is struggling with debt and you would like advice on the best way to deal with it then call us now. We can help reduce the repayments and in many cases even write off a percentage of the debt.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Shares in E*Trade Financial Corp sank 59 percent to a five-year low on Monday after an analyst said mounting credit losses may prompt customers to yank deposits and could put the online brokerage at risk of bankruptcy.
The company told customers it could absorb a $1 billion write-down and remain well-capitalized. Investors were unconvinced, pushing E*Trade shares down $5.04 to $3.55 on the Nasdaq, their lowest level since August 2002.
The slide came after E*Trade late Friday withdrew its 2007 earnings forecast, projected further write-downs on a $3 billion asset-backed securities portfolio, and said the U.S. Securities and Exchange Commission had begun an informal inquiry into its loan and securities portfolios.
It also said Dennis Webb, who led its capital markets unit, had left the company.
Citigroup analyst Prashant Bhatia downgraded E*Trade to "sell" from "hold," a forecast that incorporated a 15 percent chance of bankruptcy.
"The continued negative news flow about charges resulting from its mortgage and CDO (collateralized debt obligation) exposure, an SEC inquiry, and continued deterioration in its financial condition, all increase the likelihood of significant client attrition," Bhatia wrote.
Other analysts did not raise the specter of bankruptcy but also downgraded their ratings or reduced their price targets.
Jarrett Lilien, E*Trade's chief operating officer, in a message on the company's Web site said: "We could absorb an immediate write-down in excess of $1 billion and still remain well capitalized."
Lilien also said that because "news in the market" will get worse before it gets better, E*Trade is taking "prudent measures" to manage its balance sheet.
Much of E*Trade's recent revenue growth has come from its mortgage-backed assets, but the slowing housing market has reduced demand for a variety of mortgage securities.
Bhatia said E*Trade has altered its earnings forecasts five times in eight months, "reflecting poor risk management."
RIVALS MAY GAIN
E*Trade's problems appeared to have sent investors to rivals such as Charles Schwab Corp and TD Ameritrade Holding Corp. Their shares rose a respective 2.6 percent and 5.4 percent on Monday.
"Ameritrade, which has no exposure to the subprime difficulties, stands to gain," said Chris Manns, an analyst at optionmonster.com.
Bhatia said about $15 billion of deposits, representing one-half of E*Trade's deposit base and one-fourth of its funding base, lack federal deposit insurance and thus have a "higher risk" of leaving. He said this could result in forced selling of assets supported by these deposits.
"Customers may withdraw assets first, and ask questions later," he wrote. He said E*Trade could suffer more than $5 billion of losses if it liquidated its loan and asset-backed securities portfolio because it lost its funding sources.
Bhatia cut his price target to $7.50 from $13, and Banc of America analyst Michael Hecht reduced his target by $1.50 to $10.50, while keeping a "neutral" rating on the stock.
Sandler O'Neill analyst Rich Repetto downgraded E*Trade shares to "hold," saying he expects E*Trade to "aggressively" pursue strategic alternatives such as a deal or a sale of some assets.
Earlier, Fox-Pitt, Kelton analyst David Trone said a sale was not "a luxury, but a necessity" for E*Trade.
But Deutsche Bank analysts Matthew Fischer and Mike Mayo said the brokerage's retail business remains strong.
E*Trade said on Monday its total retail client assets rose 4 percent from September to $226.7 billion in October.
E*Trade said last week the SEC was investigating whether its capital markets division executed orders ahead of customer orders during the period 1999 to 2005. (Additional reporting by Joseph A. Giannone, Jonathan Stempel and Dan Wilchins in New York; Doris Frankel in Chicago; and Tenzin Pema in Bangalore; Editing by Gary Hill)


See Original Article

Even large businesses can struggle with debt. Here at Debtsgone we will help you deal with corporate debt, no matter how large or small your company is.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

The number of people declaring themselves bankrupt in Brighton and Hove is rocketing - bucking the national trend.

The city was today said to be in the grip of a "credit crunch", with self-declared bankruptcies up 15 per cent over just three months.

Latest Government figures reveal 470 people went into voluntary bankruptcy in the third quarter of the year, up from 401 in the previous quarter.


The worrying rise goes against the national trend which saw a fall of five per cent over the same period.

According to analysis from auditors KPMG, the average Sussex debtor proposing an individual voluntary arrangement (IVA) - a formal payback agreement between debtors and their creditors - now owes a total of £48,666, while the average bankrupt has debts totalling £50,828.

Mark Sands, director of restructuring for KPMG, today warned the problem will only get worse.

He said: "With average debt levels as high as this, interest rate rises and other strains on the family budget, many individuals are likely to see their finances severely affected.

"The impact of the credit crunch has made it more difficult to refinance existing debt so the previous release valve is no longer available. As a result the pressure on the over-indebted continues to grow.

"It is unsurprising that we are continuing to see such high levels of people choosing personal insolvency as the solution to their problems.

"Despite the national fall in personal insolvencies, anyone taking comfort in this slight drop is in for a rude awakening. Almost every indicator suggests this trend as being only a temporary respite from long term increases to record levels."

Elsewhere in Sussex bankruptcies were up an average of six per cent.

The figures show Sussex is a spendaholic county, with the level of bankruptcy and those taking out an IVA constantly on the increase. There are now more than 7,000 bankrupts and 2,200 IVAs in Sussex.

The two exceptions were Eastbourne, which saw a massive 53 per cent reduction in the number of bankruptcy cases in the last quarter, and Hastings which saw a 30 per cent drop.

Joan Kendall was forced to declare herself bankrupt after her charity calendar, featuring semi-naked spinners and weavers, left her with massive debts. Ms Kendall, 53, of Barcombe, near Lewes, wanted to follow in the footsteps of the Rylstone Womenís Institute Calendar Girls, who were first to raise funds for charity by posing in the nude.

But with stiff opposition from scores of similar offerings and a problem with some visible nipples, Ms Kendall found herself unable to sell 9,000 of the 10,000 calendars she had ordered.

Facing a £15,000 mountain of debt, she declared herself bankrupt at Brighton County Court in October.

She said: "Bankruptcy was quite a blow but it hasnít ruined my life. For a while I didnít want to go down that route but in the end I decided I had to.

"I have got over it, although I understand that for some people it would be the end of the world.

"But I am quite resilient. If you havenít got anything to lose then you canít lose it - and I had nothing to lose."


See Original Article

If you would like advice on how to deal with the debt in your business then call us now. We aim to get your debt problems back in control and keep your company trading.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

A new credit rating system which could help prevent many people falling into debt has been unveiled.
Scientists at the University of Edinburgh said their method took account of general economic conditions and not just a person's credit history.

They believe taking account of interest rates, consumer confidence and earnings will allow lenders to assess risk more accurately.

The scientists hope banks and building societies will now test the system.

Most banks and credit card providers draw on information such as an individual's debt payment history, occupation and how many times they have moved home.

Professor Jonathan Crook, of Edinburgh University's Credit Research Centre, said his tests using the extra criteria were more accurate in predicting debt defaults.

'Higher risk'

He said: "Increases in earnings and the FTSE index - which are indicators of a improving economy - all provide conditions for reduced risk of default.

"On the other hand, higher interest rates, greater unemployment and rising house prices - which have a direct impact on people's pockets - all result in a higher risk.

"So, too, does greater consumer confidence because people spend and borrow more.

"We have found that this does allow better predictions that some people will default."

The number of people being turned down for credit cards has soared recently, with companies also increasing the fees and rates they charge as a result of the global credit crunch.

Financial website MoneyExpert.com said an estimated 3.27 million people had credit card applications rejected in the six months to the end of September, 17% more than during the previous six months.


See Original Article

If you need help with debts in your company then call the experts in. We can help get the debt back in control and save your company.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

It is too early to tell what the impact of the global credit crunch will be on the number of people seeking IVAs or declaring themselves insolvent, an industry expert has said.

James Ketchell, spokesperson for the Consumer Credit Counselling Service (CCCS), said that it took some time for consumer debt levels to build up to such a point that an IVA or insolvency became necessary.

As a result, he explained that it could take years for the full impact of the recent global financial turmoil to display itself.

He added: "There is a risk that people on cheap fixed-rate mortgages will in the future be forced onto more expensive products, so they will have to address their spending as a consequence of that.

"In general it is hard to tell how the credit crunch is going to affect people in this way but it is going to be more difficult for people in the future."

Recent figures from the Insolvency Service indicated that 10,239 people opted for an IVA in the third quarter of 2007, down 4.3 per cent on the previous three month period.

See Original Article

Does you business struggle with debt problems?
Would you like advice on how to deal with it?
Then call us now. We can help get you back in control.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

IT businesses protected by 'paperless offices'
IT businesses are less at risk of disaster due to the emergence of the paperless office, according to industry experts.

The Association of Business Recovery Professionals, R3, which is the leading professional association for insolvency, business recovery and turnaround specialists in the UK, has said that IT firms have a better knowledge of back-up procedures making their businesses more secure.

It also added that where there is a greater physical flow of paper it is more difficult to remain safe.

Nick O'Reilly, vice president of R3, said: "IT and software consultancy based businesses tend to be better than manufacturing businesses because, by their very nature, they tend to have much more knowledge of security back-up procedures, etc, and they can operate from home or from any other setting. They don't have as many physical files or physical papers."

He continued: "The trouble with a lot of firms, including lawyers and accountancy firms, is that although they all aspire to be electronic, there is still a lot of paper flow in most offices."

According to Disaster Recovery Solutions, 90 per cent of businesses that lose data are forced to close within two years and around 80 per cent of firms without a tested recovery plan are forced to close within 12 months of a fire or flood.


See Original Article

If your business is struggling with debt and you would like help then please call us. We specialise in helping businesses struggling with debt and in many cases can help reduce the debt to a manageable level.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

SHOPKEEPERS have been angered by news that work on a housing development above their businesses has stopped as the contractor has gone into liquidation.

Adams House, on East Gate opposite the bus station, is in the process of being expanded from two to four storeys, including 34 new flats.

However, work ceased last week after the main contractor, Ingram Design and Build went into liquidation.

A spokesman for Rom Capital, the owners and developers of Adams House said: "The main contractor Ingram Design and Build is insolvent and is in the process of going into liquidation. We as developers have therefore issued a notice terminating their employment.

"Rom Capital Ltd is in the process of re-tendering the build contract and expects to have a new contractor in place by the end of this month.

"In the meantime some works are ongoing so that no real time delay is caused by these unfortunate events, with a view to completing the project on schedule in December 2008."

One of the shopkeepers, who did not wish to be named, explained to the Herald that they cannot access the back entrance to their shops and many of the units are having problems with their roofs and ceilings since work started.

"The work has been nothing but an inconvenience for the shop owners and because of all the scaffolding people think we're shut.

"Since they've been up there my roof has been leaking every time it rained which caused the ceiling to fall through.

"We can't use the car park at the back because it's blocked with building materials and scaffolding."

He added that deliveries have to come through the front door which is an added inconvenience to customers.

"I want to serve the customer, but I have to ask them to move to one side while the delivery is brought to the back of the shop.

"The back of the units looks like a building site."

He said that some of the builders came into the shop and told him what had happened to the company and that there were a lot of rumours going around between the tenants.

"I've heard through rumours that last Tuesday at 2pm the company went bankrupt," he said. "Some of the workers came in here and said that the company declared bankruptcy.

"No-one knows why. All the tenants think maybe they couldn't afford to do the job."

Another shopkeeper said they were still waiting to hear officially from their landlord about what was going on.

Harlow Council's Planning Committee approved the development of Adam's House last January. One of the shops, plot five, will be closed down to make way for an access point for the flats.

It will be one of a number of developments planned for the town centre where no car parking will be provided in a bid to encourage use of public transport and reduce the number of cars in the town.


See Original Article

If your company is facing liquidation and you would like help preventing it and need to get back in control of the debt then call us now. We can help get you back in control and keep your company trading.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

The number of people becoming insolvent in the UK is on the decrease, although some commentators believe this could merely be the calm before the storm.

The number of UK personal insolvencies dropped by 3% between July and September on the previous three months, with 26,072 individuals entering into bankruptcy or an Individual Voluntary Arrangement. The figures are also down on the same period last year, according to a report by the Government's Insolvency Service.
However this could just be a momentary reprieve before the effects of the summer's credit crunch begin to move beyond the corporate world to impact on consumer confidence, according to business adviser Grant Thornton.

It believes this, in conjunction with the possibility of future interest rate rises, could have a marked impact on the number of personal insolvencies nationwide.

Its head of personal insolvency Mike Gerrard said: 'In spite of relatively benign economic conditions over the past decade, personal insolvencies have gone through the roof and this recent drop is simply the calm before the storm as the credit crunch begins to bite beyond financial markets.'

The slowdown in the amount of people seeking IVAs may be due to changes within the debt management industry and not necessarily due to changes in people's spending habits, Grant Thornton added.

More IVA providers are using informal debt arrangements for their clients and others are cutting back on the IVAs they offer due to tighter credit restrictions and higher marketing costs.

New figures from the Ministry of Justice released today show that the level of house repossessions are stable. Other statistics from debt consultancy Thomas Charles show that one in four Britons will cut back on their credit card spending this Christmas.

However the total amount of UK personal debt exceeded UK GDP for the first time ever in September, Grant Thornton discovered recently, and this is not helped by the growing number of people using their credit cards to make mortgage repayments.

Gerrard added: 'We are seeing an increasing number of individuals turning to their credit cards to make mortgage payments. Using credit to pay off credit is a precarious balancing act performed on the thinnest of wires, and it only takes some missed payments and a switch from a fixed to variable mortgage interest rate to send these individuals into a downward spiral.'


See Original Article

If you are in debt and you would like help then please call us now.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

INTEREST rate rises, growing consumer debt and tightening lending practices will cause a major escalation in personal insolvency next year, the Cardiff office of PKF warns.

Last week the number of people declared insolvent fell by 5% in the three months to the end of September – the first year-on-year drop in five years.

However, PKF partner Keith Morgan believes that in 2008 insolvency numbers are likely to rise again.

He said, “We have been helping an increasing number of people who have been using their credit cards to pay their mortgages, which is a mark of extreme desperation given the speed with which the level of debt mounts up.

“It’s an unsustainable practice and a sign that many are standing on the precipice and only relatively small additional costs will push them over the edge.

“Personal insolvencies in England and Wales peaked at just under 30,000 in the last quarter of 2006 and the first quarter of 2007, but the likelihood is that the ceiling will be breached in the first quarter of next year.

“I anticipate the numbers will continue to rise steadily throughout the year.

“It will not be much of a comfort to those facing this position, but a hard dose of reality in the personal credit market is long overdue.

“It’s deplorable that it’s taken a meltdown in the US sub-prime mortgage market for lenders to review their loans and credit policies but it is essential that it happens. It’s going to mean short-term pain but unrealistic lending practices had to stop at some point; hopefully this is it.”

The partner with the accountancy and business advisory firm said that the tightening of lending criteria would cause the insolvency figures to rise significantly as those in the worst financial positions weren’t be able to carry on.

He added, “It’s a very hard lesson for the UK to learn but it’s essential that it is taken on board. Everyone has to understand that there is a cost for credit.

“We have to help the thousands of people in debt and part of that is removing the stigma of bankruptcy for the current generation. There is life after bankruptcy and people have to view it as the start of rebuilding their lives.

“That’s a very difficult message to take on board for someone who might have lost their home but it’s the reality created by over a decade of spending on credit.”

Rob Lewis, partner in the business Recovery Services practice at PricewaterhouseCoopers, said, “The recent rise in credit card debt suggests that further increases could be round the corner.

“Rises in credit card debt and repossessions are both worrying signs that consumers are feeling the pinch and turning to unsecured borrowing as a means to make ends meet.

“With the problems in the sub-prime market, consumers may find it harder to borrow their way out of trouble leading to another wave of insolvencies over the coming months.”

He added, “Credit has been readily available to corporates until this summer and the downward trend in corporate insolvencies reflects this.

“However, while companies have so far avoided formal insolvency, less credit-worthy corporates are finding that it is increasingly difficult to borrow at affordable rates in the current climate.

“There is still uncertainty as to how many businesses will fail as a result of the more restrictive credit environment.”


See Original Article

If your business is struggling with debt and you would like help dealing with it then we can help. We specialise in helping businesses deal with debt and keep trading.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Uncertainty lingers over how many businesses could fold in the current restrictive credit climate, PwC says

PwC has warned that a gulf is forming between corporates despite evidence of a reduction in insolvencies.

Mike Jervis, partner in the Business Recovery Services practice at PwC, said: 'While companies have so far avoided formal insolvency, less credit-worthy corporates are finding it increasingly difficult to borrow at affordable rates in the current climate. There is still uncertainty as to how many businesses will fail as a result of the more restrictive credit environment.'

Jervis said that credit had been readily available to corporates until this summer and the downward trend in corporate insolvencies was a reflection of this.

PwC also commented on the drop in personal insolvencies, warning that there could be more to come.



See Original Article

If your business is in debt it can stop you from concentrating on the day to day operations of the company. If you are struggling with corporate debt then call us now. We can help get you back in control of your finances.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

THE number of people declared insolvent fell by 5% in the three months to the end of September – the first year-on-year drop in five years, figures showed yesterday.

But the Insolvency Service statistics also reveal that within the figure the number of bankruptcies rose 2.2% on the same period last year, to 15,833.

The rise in bankruptcies follows a dispute between banks and Individual Voluntary Arrangement (IVA) providers, which has seen the number of IVAs in the quarter fall by 14.3% on the same period last year.

IVAs are arrangements that can prevent people going into bankruptcy, but they have come under mounting criticism over their suitability for some consumers and their arrangement fees.

Yesterday’s figures showed there were 26,072 personal insolvencies – people who were either declared bankrupt or took out an IVA – in England in Wales, which is down 3% on the previous quarter.

The drop is the third quarterly fall in a row and the annual decrease, the first since 2002, was greater than expected.

But insolvency expert Pay Boyden of PricewaterhouseCoopers Business Recovery Services said recent credit card debt figures could signal further insolvency misery to come.

He said, “It is worrying that credit card debt rose in September for the first time in two years, so this may be an indication that we are heading for another wave of insolvency rises next year.”

Meanwhile, data from the Ministry of Justice shows that the number of orders for home repossessions in England and Wales fell by 1% in the third quarter year on year, to 23,806.

The Council of Mortgage Lenders predicted only days ago that the number of repossessions could jump by 50% next year as borrowers feel the pinch from five interest rate rises since last August and a tightening in lending criteria amid the credit crunch.

In August, CML figures revealing the actual number of home repossessions across the UK showed that repossessions in the first half rose by nearly a third to 14,000. It predicts that will rise to 30,000 by year end, up 32% on 2006.

While the numbers are still far behind the 75,000 annual repossessions recorded at the height of the housing crash in the early 1990s, it is a cause for concern, according to Mr Boyden.

He said, “Rises in credit card debt and repossessions are worrying signs that consumers are turning to unsecured borrowing as a means to make ends meet.”


See Original Article

If your company is struggling with debt then call in the experts. We can help get you back in control of your finances and the business back on track.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

AN application to Manchester Crown Court by a consortium of businessman to save Northwich Victoria from liquidation by purchasing the club and paying off most of its estimated £500,00 debts has been adjourned following a legal intervention by the Football Conference Board.

If the Conference officials’ questions can be satisfactorily answered, the winding-up petition against the club will not go ahead at a reconvened Crown Court assembly on Friday. In which case, liquidation plans brought by HM Customs and Excise will be dropped and Northwich Victoria 2004 Ltd, currently owned by chairman Mike Connett, will go into administration on that day.

This will result in the deduction of 10 points from their Blue Square premiership record leaving the team – with only three draws to show from 17 games – with a tally of minus seven points and little realistic chance of avoiding relegation next April.

Representing the consortium, businessman Jim Rushe, who is chairman of Cheshire League club Woodley Sports, says he hopes on Friday he will be given the go ahead to negotiate the purchase of the Football Club from Connett, who has agreed to rent the Victoria Stadium, which remains in his ownership, free of charge for the remainder of the season.

The longest-standing supporters’ organisation, the Northwich Victoria Trust, has been in close touch with the consortium and have agreed to help in any practical way.


See Original Article

If you need help dealing with insolvency in your company and would like advice on the best option to deal with it the call the experts. We help more companies a year then any of our competitors.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

TA Kirkpatrick, the family-owned Dumfriesshire steel business, has collapsed into liquidation after a number of customers withheld payment amounting to "several hundred thousand pounds", according to accounting firm Campbell Dallas.

The company, which was based at Kirkpatrick-Fleming, on the banks of the River Kirtle near Lockerbie, was founded by Thomas A Kirkpatrick in 1971, and specialised in the construction of steel-framed buildings for agriculture, industry and commerce, as well cladding to architects and consultant engineers. The company became incorporated in 1991.

Derek Forsyth, who was appointed provi- sional liquidator, said there was no prospect of the company trading after the liquidation, and all 30 of its employees have already been made redundant.

advertisement"It's a real hit, especially at this time of year and in an area like this where the possibility of these people becoming re-employed quickly is fairly slim," said Forsyth, a partner with Campbell Dallas.

The company is understood to have become embroiled in a number of disputes with customers, one of them involving contract worth more than £100,000, and several others worth less.

"It was all too much for them and it ended up impacting on the com-pany's cash-flow position,"

Forsyth added.

"We are now in the process of trying to sell the property. It's quite sad really."

See Original Article

If your copmpany is struggling with debt and you would like some advice then please call us. We can help reduce the debt in many cases and make the payments more manageable.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Levels of corporate insolvency have remained relatively steady for the last few years, but that is about to change, according to insolvency trade body R3 – The Association of Business Recovery Professionals.

Government statistics, released on Friday, may show a rise in the number of company administrations and liquidations, with certain industries suffering the most as the result of turbulent conditions in the UK. Travel, tourism and agriculture could be the worst hit. The figure looks certain to rise in quarters one and two of 2008.

R3 Council member Peter Sargent from Yorkshire says, “I have heard on the grape vine that things are starting to change in the leisure and tourism industry. A good example of this is a wine stockist who says that, although the quantity of wine bought by restaurants has not changed, the quality has, so his customers seem to be going for the cheaper options.”

It is likely that smaller businesses will be the first to suffer, as in many cases the owners or backers have loans backed by personal guarantee. If either the individual or company find themselves in financial difficulty, one will have a knock on effect on the other. On top of this credit is becoming harder to obtain with smaller companies particularly vulnerable.

Peter added, “As soon as a business starts to have financial difficulties they should seek expert advice. Problems can be overcome if recognised and tackled early, but often people wait until it is too late, and the business has to be sold or liquidated."

See Original Article

If your business is feeling the crunch and you would like advice on how to get clear of it then call us now. We specialise in helping troubled businesses.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

NEW YORK, Oct 29 (Reuters) - Tesco Plc (TSCO.L: Quote, Profile , Research) on Monday sold $2 billion of debt in two parts in the 144a private placement market, said a source familiar with the deal.

The sale included $850 million of 10-year notes yielding 1.18 percentage points more than U.S. Treasuries and $1.15 billion of 30-year bonds priced to yield 1.53 percentage points more than Treasuries.

Citigroup and J.P. Morgan were the joint lead managers of the sale, the source said


See Original Article

If your business, whether large or small, is struggling with debt then call us now. We can help get you back in control and keep the business trading.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk

Smoke ban rebel Nick Hogan has settled his case against former Provence boss Paul Kiely to remain at the Swan and Barristers in Bolton.

However, his future is still unclear after a notice appeared in the Bolton Evening News that a company called "Chipmunk City Ltd t/a the Swan" had called for a meeting under the Insolvency Act. Its director is Nick Hogan.

The MA could not reach Hogan or the pub but his solicitor Andrew Haffner of Manchester law firm Stripes said: "Nick is still at the pub. We have settled with the Kielys and agreed Nick is to stay at the pub."

Hogan was set to face former Provence boss and owner of the pub Paul Kiely at Manchester High Court on 1 November.

Kiely argued that Hogan had broken the terms of his lease by allegedly flouting the smoking ban.

Hogan is also due before magistrates on 12 November on charges of flouting the ban.

Earlier today, the news broke that the other two high profile rebels – Hamish Howitt and Tony Blows – had both decided to sell up.



See Original Article

If your business is struggling and you would like some advice then please call us now. We can help get you back on track.

Call us on: 0800 071 1616

Email us on: info@debtsgone.co.uk

Website: www.debtsgone.co.uk