Insolvency rates in blackpool
I was reading the Blackpool Gazette online recently and I came across an article that said Blackpool was an insolvency Blackspot. I must admit it piqued my interest and so I read on keen to find out more about what makes Blackpool such a “hotspot” as the article called it, for bankruptcy and insolvency.
The article reveals that per head of the population, Blackpool ranks at a lofty number 8 for the number of insolvencies. I’m pretty sure the article was talking about insolvent people rather than companies but it didn’t make it too clear really.
I had to ask myself whether I was surprised by what I was reading and in all truth I wasn’t surprised at all. The Blackpool economy, for so long dependent upon tourism, has been in a steady decline for some time. The decline is probably best measured in decades rather than years and with so many small owner-managed businesses in the town it is perhaps inevitable that personal insolvencies and bankruptcies have been on the rise.
The article goes on to say that 9 people in every 1,000 of the population were made bankrupt in 2014. That somewhat alarming statistic means that Blackpool has the 4th highest rate of personal bankruptcy in England and Wales. The figures by the way come from the Insolvency Service.
Blackpool Insolvency Practitioners
Having read about the insolvency rates in the town, you would be forgiven for thinking that local insolvency practitioners must be doing rather well for themselves. After all, if you are a small business owner in Blackpool and your business isn’t doing too well you might need to go and seek out some professional advice. When I took a quick walk around the town recently I was struck by the number of guesthouses and Bed and Breakfast places that were shut or closed down despite it being the Summer season. It is an obvious sign that there just isn’t the same level of demand for such accommodation even during the peak season months of July and August. All struggling businesses need a way out of their problems and if your business is insolvent you are best taking advice from an insolvency practitioner in Blackpool.
The good news is that whether you are a sole trader, in a partnership or a company owner local Blackpool insolvency practitioners can assist you in dealing with your financial affairs and find the right way of dealing with your creditors.
If you are a sole trader or a member of a partnership then you are more than likely concerned about the possibility of being made bankrupt by one fo your creditors. perhaps HM Revenue and Customs are chasing you for outstanding tax or a trade creditor or supplier is threatening action. Insolvency firms in the town are experienced in taking a full apparaisal of your situation and advising not just about bankruptcy but also about Individual Voluntary Arrangements (IVAs). If your debts are only small a Debt Relief Order may be more suitable.
Directors of small limited companies may be less concerned about personal bankruptcy and fear of losing their home because limited liability protects them from such an outcome but they WILL be concerned about the threat of having their company wound up. A licensed insolvency practitioner can take a look at the assets and liabilities of a company and its trading history and work out whether it would best to place the company into liquidation (probably through a creditors’ voluntary liquidation (CVL)) or save the company through some kind of repayment agreement with creditors through a CVA (company voluntary arrangement).
Whatever your situation, getting help as soon as you can is highly recommended.