What does it mean for your bad debt ledger?
The announcement that the temporary insolvency restriction protections, put in place to help protect businesses during the pandemic, are being lifted is huge news for creditors and businesses alike.
Alongside the ending of furlough the lifting of restrictions will see many companies having their position crystallised after largely being propped up since the start of the initial lockdown.
The Government are however, introducing a number of temporary measures to continue supporting small businesses.
- Increasing the minimum amount for which a winding up petition can be issued. The new level will be set at £10,000 – double that of the pre-Covid level, and a far cry from the original level of £750.
- Creditors to be required to seek payment proposals from debtors and to allow 21 days before commencing winding up proceedings.
The existing restrictions are due to be lifted from the 1st October 2021 and the new support measures will be in place until the end of March 2022.
What does this mean for creditors? With the support of our National Creditor Services team, Begbies Traynor are offering free bad debt ledger reviews.
We will provide a free consultation on cases you wish to litigate against which will include an analysis on the likelihood of repayment and advice on what your best options for recovery are.
If you would like to learn more about this service please do not hesitate to contact me.