Abacus Daily Debt News

Quarter day ‘will increase insolvencies’

A rise in bankruptcies is likely to occur as rent becomes due on the next quarter day, suggests one expert.

Martin Kingman, debt recovery and insolvency manager at law firm Furley Page, encouraged landlords and their tenants to reach an agreement where unpaid debt could be deferred.

He said: "Landlords are facing tough choices about recovering overdue rent while tenants are struggling to make ends meet. The last thing either party wants is vacant premises."

Organisations of all types were at risk during the current economic downturn, with deferred payment plans or payment holidays being possible options for preventing insolvency for landlords and tenants, Mr Kingman continued.

In efforts to increase debt management for those in financial difficulty, the British Retail Consortium is promoting the introduction of monthly billing to replace the current quarterly method.

The government last month announced changes to the law which will protect tenants from being made homeless due to the repossession of a house because of debt accrued by their landlord.

By Francis Finch