Kirklees Business News 04/02/14

Page 1

Amy Wray

FTSE 100 -44.78 6465.66

HUDDERSFIELD EXAMINER TUESDAY, FEBRUARY 4, 2014

PASSION FOR PROPERTY Interview - Page 3

1

Martin Thompson POWERING THE WAY Column - Page 6

An EXAMINER publication

KIRKLEES BUSINESS NEWS 4, February, 2014

The business NEWSpaper for Kirklees

Plea for action to tackle insolvency By HENRYK ZIENTEK Business Reporter henryk.zientek@examiner.co.uk

Success in store FLEET management group FMG has been awarded a major contract to manage about 900 Asda vehicles for the retailer’s home shopping operation. The vehicles, which operate out of locations across the South of England, represent about 50% of the Leeds-based retailer’s entire home shoppingfleet. Full story - Page 5

examiner.co.uk

PERSONAL insolvency procedures are in need of reform to provide better protection to both creditors and debtors, according to a report by insolvency trade body R3. Under current rules, thousands of indebted individuals struggle to access a debt relief solution that is suitable for their needs. Insolvency practitioners are also concerned that reckless spending is not sufficiently discouraged, to the detriment of creditors. Chris Wood, Yorkshire R3 vice-chairman and partner at Cleckheaton-based Clough Corporate Solutions, said: “Personal insolvencies and consumer debt have recently increased, while an interest rate rise looms on the horizon. “Action is needed now by the Government to make sure the personal insolvency regime can deal with any sustained rise in the numbers of people with severe debt issues. “A good personal insolvency regime must strike the right balance between helping financially struggling people get back on their feet and protecting creditors like banks and businesses from people running up debts without being worried about the consequences.” Mr Wood said: “The current regime has the right building blocks to achieve this balance, but more work can be done. Too many people are currently unable to access a personal insolvency solution that is right for them.” R3’s report calls for the government to allow the up-front £700 bankruptcy administration fee to be paid in instalments. Under current rules, many people can’t afford this fee and are unable to

INSIDE

■■ Chris Wood, Yorkshire R3 vice-chairman and partner of Cleckheaton-based Clough Corporate Solutions

access bankruptcy and protection from their creditors. It also wants to make Debt Relief Orders (DROs) easier to access. DROs are an alternative to bankruptcy and cost £90 to enter. However, debtors must have under £300 of assets and £15,000 of debts to enter a DRO. R3 said the DRO limits should be raised to £2,000 for assets and £30,000 for debts. R3 also called for the standard bankruptcy term to be lengthened from one year to three years - with a maximum 15-year term for the most culpable debtors. R3 claimed reckless spending and

behaviour that could lead to bankruptcy was not discouraged by a one-year term - putting creditors at risk. The body also called for simplified Individual Voluntary Arrangements, making it easier for debtors’ repayment proposals to be approved by creditors. It also said creditors should not be able to make changes to proposals. Said Mr Wood: “Parts of our personal insolvency regime are both too lenient and too inflexible. “Whilst on the one hand, wealthy Europeans are heading to England and Wales to take advantage of the bankruptcy

regime and its very short bankruptcy term - so-called ‘bankruptcy tourism’ on the other hand, financially struggling people are unable to afford the fee to enter bankruptcy and have too many debts and assets to enter a DRO. These people are left without protection from their creditors.” According to R3 figures, 2.4m British adults say they are currently in a debt management plan. These are unregulated debt solutions but formal options may be more suitable. Just over 100,000 people entered a formal insolvency procedure last year.

The most trusted news brand in the business

Gold award A RECRUITMENT agency has become one of the first in the country to gain a gold standard for the way it vets teachers and support staff before sending them in to schools. Brighouse-based Provide Education has been awarded the highest national accreditation for safeguarding children. Full story - Page 8


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
Kirklees Business News 04/02/14 by Huddersfield - Issuu