Only three quarters as many instances of personal and company insolvency can now be pursued by the Insolvency Service, following the government’s austerity-driven cuts to funding, it is claimed.
The trade union Prospect has expressed concern that debtor petition staff numbers are to be slashed by a third in an effort to save money.
National secretary Geraldine O’Connell says: “The government’s austerity measures have already reduced the Insolvency Service’s capacity to deal with insolvency cases by more than 25%.
“We are currently arguing that where debtor petition staff have been declared ‘surplus’, their skills should be redeployed.”
In the meantime, however, the service’s ability to pursue both personal and company insolvency petitions may be affected by downsizing.
For those businesses who are facing the first signs of financial difficulty, a diminished Insolvency Service may make it even more important to seek advice on bankruptcy as early as possible.
By getting advice on bankruptcy when you are in the early stages of cash flow difficulties, you can potentially escape corporate insolvency completely, and recover your business to a more profitable position.