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Archive for January, 2018

Insolvency at a Corporate Level

Insolvency at a Corporate Level

If you own your own company, the word insolvency is unlikely to be one that you associate with anything positive.

Under the British law, a company is insolvent if it is unable to pay its debts, even after selling all its assets. While insolvency is an undesirable situation, there are several options that companies can take to continue trading.

Read on for some of the best steps to take when dealing with insolvency.

Concentrate on your best customers

When your business is struggling financially, focus on your most reliable, profitable customers. Not taking on any new customers can also help you as you can focus on increasing work for customers you already have.

Cut your costs and repay your creditors

As a business, sometimes it is necessary to look at where you can cut your costs. You can cut costs on several different things including salaries, equipment and marketing materials. Doing so, is one of the most effective ways to get a business back to a viable position.

It’s also important to plan. Think about steps that you can take in order to reduce the risk of insolvency before it has happened.

How to reduce the risk of insolvency

When it comes to managing your businesses money well, there are several steps you can take to reduce the risk of insolvency.

Cash flow forecasting and credit control are both good options. Credit control helps improve the balance sheet of the business. This will reduce the chances of insolvency. Regularly updated cash flow forecasts provide an early warning system of any potential cash flow shortage.

How we can help

At Bell & Co we are well versed in dealing with both individuals and companies that are in debt. We feel that the stigma attached to this has lessened and we are now hoping to help companies recognise all the options that are available to them.

If you and your business is encountering problems regarding your finances, call 0330 159 5820.

Alternatively, read our E-brochure for further information about regarding Bell & Company. 

The Positives of Bankruptcy

The Positives of Bankruptcy

The word bankruptcy tends to fill most people with feelings of dread. It’s hard to deny the fact that the word has typically negative connotations, It is usually associated with financial chaos and the diminishing reputations of those associated with it.

While people tend to only focus on the negative aspects of bankruptcy, there are a number of positives that can come as a result of considering it as an option.

There has been a steady rise in personal insolvency rates over the last couple of years, indicating that more people are considering this as an option.

If you are wondering whether bankruptcy is a viable option for you, read on to find out about some of the positives associated with it.

Bankruptcy triggers automatic stay

An automatic stay is an injunction that is issued as soon as you file for bankruptcy. Once this is issued, it stops all lawsuit and collections against the debtor. Therefore, when you file for bankruptcy, you will no longer be at risk of having property and other possessions repossessed. You will also stop receiving calls and letters that threaten to sue you.

It gives you a chance for a fresh start sooner

As soon as you file for bankruptcy you can start taking steps to getting your finances back under control and improving your credit score. Without the ability to put a stop to the chaos that is credit gone awry.  Some people would never get their finances under control again, but bankruptcy can enable that to happen.

You’ll start to improve your rating

Although, a bankruptcy filing can remain on your record for up to 10 years, it will eliminate many debts. Individuals will begin improving their credit rating after filing for bankruptcy.

It gives you a chance to reflect

While it doesn’t sound like the most glamorous situation to be in. Filing for bankruptcy is a good opportunity assess and review your financial history. Law that stipulates that anyone who files for bankruptcy is required to receive some form of credit education. Therefore, you’ll have to chance to find out how you can avoid making similar mistakes in the future.

To understand how bankruptcy can be a positive way out, and help you get back on your feet, contact our team today on 0330 159 5820.

What’s the best course of action when you are facing negative equity?

If you are dealing with negative equity, it’s likely that you are worried about what the future will hold for you in terms of finance.

Negative equity is when a property is worth less than the mortgage secured on it, and it’s normally caused by falling property prices. If you are currently faced with negative equity and are wondering what the best course of action to take is, read on for our advice.

How to find out whether you are in negative equity

You might not immediately know you are in negative equity, so the best way to find other whether you are is to ring your lender to find out how much money you still owe on your property. If the value of the property is below what you owe, then you are in negative equity.

Problems attached to negative equity

Unfortunately, being in negative equity can cause several different problems for yourself and your family. Firstly, negative equity is an immediate problem if you want to sell your home. Without savings to fall back on you won’t be able to pay the difference between the value of your home and the mortgage, which is going to make it very difficult for you to move.

Re-mortgaging may also be a problem. If you are hoping to achieve a fixed rate or a cheaper deal, it’s likely that most lenders will be wary of you and your finances and will not let you switch to a new mortgage deal as a result of this.

If you are unable to make the payments, you are also at risk of having your home repossessed.

How to manage negative equity

There are several steps that you can take to manage your negative equity. Firstly, you could consider overpaying your mortgage. Check whether your existing mortgage will let you make overpayments and, if so, how much you can overpay without incurring an early repayment charge.

Another option is to rent out a home that is in negative equity. In doing so you would keep the existing mortgage, but it’s likely that you would pay a higher interest rate.

Talk to us

If you are facing negative equity, there’s no need to feel as though you are going it alone. 

Call 0330 159 5820

What does the Autumn Budget mean for house prices?

What does the Autumn Budget mean for house prices?

As soon as the budget is introduced, most people are quick to question how it may affect them, with one of the main areas of concern being house prices. The housing crisis is, of course, something that most of us are affected by, and with Theresa May hinting at plans to build more houses more quickly, what will the new budget mean for house prices in the UK?

Stamp duty could be set to change

As ever, the government is under increasing pressure to help young voters and one of the main areas of focus is stamp duty. Abolishing stamp duty would mean that first-time buyers would be able to climb the property ladder more easily as it would help combat extortionately high house prices, so this is good news if you are thinking of taking a leap and putting down a deposit on your first home.

Abolishing or changing stamp duty could save first-time buyers between £3000 and £5000. The rethink of stamp duty will, however not be such good news for landlords, who could be hit by an increase in stamp duty for buy-to-let properties.

Green belt and planning rules may change

In terms of the budget for housebuilders, one of the key areas that is always in question is planning rules. Historically government is renowned for hogging land, but it seems that this time around, housebuilders could be set to get what they want. The Chancellor of the Exchequer is currently considering changing parts of the green belt rules, which would be an easy move to make as it would cost him nothing.

Borrowing rules for councils

At present, local councils are not allowed to borrow money to build homes, but 21 London Boroughs have recently followed up calls for local councils to be allowed to invest in new housing. If the government plays its part by investing the appropriate capital, resources, and freedom, it could mean much affordable housing would be readily available for people residing in London. This is good news given how expensive property is in the capital.

More money invested into the Help to Buy Scheme

The Help to Buy scheme is a great resource for first-time buyers and things could be about to get even better. The Prime Minister has stated that there are plans to invest another £10 billion into the scheme, making it available to an additional 135,000 people.

However, if you have already found yourself in difficult circumstances due to issues such as property debt, or owe a large amount which is putting your assets at risk, it is worth taking a no obligation, impartial, free consultation here at Bell & Company. Call us today – 02895217373

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