Insolvencies rise as creditors head to court

A sharp rise in creditors using court action to recover debts has fuelled fears of a jump in insolvencies. The number of county court judgments lodged against companies in the three months to the end of September was 21,764, a rise of 51% on the previous quarter. Begbies Traynor found that the number of critically distressed businesses with county court judgments of more than £5,000 filed against them rose by 17% to 1,668 in Q3. While rents are among the debts being chased, Begbies Traynor said HM Revenue & Customs was “taking an increasingly aggressive line in chasing debts, particularly those who have defaulted on time-to-pay arrangements”. The Times (£)