The hidden cost of going under without insolvency- corporate insolvencies

Creditors could be losing billions of pounds each year to “hidden” business closures, where companies shut their doors without going through formal insolvency procedures.

The number of businesses simply being struck off the Companies House register has risen by almost 30pc over the past three years, to 179,000 in the year to April.

Formal corporate insolvencies have been in decline since 2008. The strike-off numbers may explain the lower-than-expected official company failure figures since the downturn, according to R3, the insolvency trade body that conducted the study.

Source: www.thetimes.co.uk

Straightalkdebt

Find us on Google