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Businesses given insolvency warning

Published on 13 Jan 2010 under category: legal

Businesses must be careful in the current economic climate, it has been claimed.

David Kern, chief economist at the British Chambers of Commerce, said that he expects confidence among firms to rise.

However, he warned that recovery remains "patchy", which could lead to concerns regarding insolvency and bankruptcy.

He said: "The implication is that businesses have to be very cautious. Although they have to prepare for some recovery, it is not going to be a very strong recovery. They have to make sure they have enough cash, they mustn't expect a boom."

Mr Kern suggested that any upturn is going to be "very shallow and slow", although he did stress that the market is heading in the right direction after the downturn.

These comments come after David Cameron recently told the BBC's Andrew Marr show that if the Conservatives were to come to power, they would increase the insolvency threshold from £750 to £2,000.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.