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”.
