From Carillion to Monarch Airlines, the Insolvency Service reveals its biggest challenges
THE Insolvency Service has published its latest annual report – offering an insight into its work supporting those with money problems, as well as tackling financial wrongdoing.
The agency, part of the Department of Business, Energy and Industrial Strategy, revealed that it administered 44,633 new insolvency cases in the past year – 11.918 online bankruptcy orders; 7,396 creditor bankruptcy petitions; and 25,319 debt relief orders.
Debt relief orders can form debt solutions to some of the most vulnerable people in society. They are specifically aimed at those with low levels of unmanageable debt, minimal surplus income and little by way of assets
Its performance report also shows that it disqualified 1,231 directors for misconduct – with 7.6% of these handed a ban of 10 years or more. The average disqualification period is 5.8 years.
The Insolvency Service estimated that the net benefit to the market for each director disqualified is around £100,000 in terms of creditor damage prevented.
Working with the Home Office Immigration Enforcement team, the Insolvency Service obtained the disqualification of 115 directors of companies in 2017-18 for employing illegal workers.
Its insolvency investigators also helped to bring about 243 criminal prosecutions for financial wrongdoing, and a further 160 insolvency inquiries remain “live”.
Chief Executive of the Insolvency Service, Sarah Albon, said it had faced its biggest challenge with the collapse into insolvency of construction giant Carillion, which had such a dominant presence in Yorkshire and the North East.
She also highlighted the continued progress of its redundancy payments service, making payments to workers as a result of insolvency when it is most needed.
And, she added, new insolvency rules, which came into force early this ﬁnancial year, had helped to streamlining key insolvency processes.
The Insolvency Service had consistently met key targets whilst handling large-scale redundancy cases, such as the insolvency of Monarch Airlines.
This resulted in the biggest peacetime repatriation in history, involving more than 110,000 stranded holidaymakers, included many for Yorkshire and the North East. The insolvency also triggered the cancellation of 750,000 bookings, including many flying out of Leeds-Bradford Airport.
The annual report can be read in full here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/729616/annual_report_2017-2018_for_web_v2.pdf
Here at Walsh Taylor, when financial difficulties arise, we’ll put time on your side.
For more information on how our licensed insolvency practitioners and businesses recovery teams in Leeds, Bradford, Harrogate and Darlington can help you, please call us on 03300 244 660 or email email@example.com