If your company cannot pay its debts you are likely to find yourself in a frightening and confusing place. This page gives an overview of corporate insolvency and explains how we can help you through it.
What is company insolvency?
Put simply, when a company has net liabilities, when it has reached the point of no return or cannot pay debts when they fall due it is insolvent. As soon as this happens, directors of the business should take advice from a licensed insolvency practitioner because:
The situation will impact how the business should be run
It is sometimes possible to trade out of the situation if advice is sought early enough
There are strict penalties for ‘getting it wrong’ that we can help you avoid
How can we help?
If you are a director or shareholder in this uncomfortable situation you may feel very alone. But we operate in this area the whole time and meet people facing the possibility of company insolvency every day. Our team of Insolvency Practitioners promise to help relieve the pressure you’re feeling, find the best way forward and give you a clear plan of action.
It is important to be aware, however, that directors of an insolvent company have a legal duty to act in the best interests of creditors and need to be careful to avoid wrongful trading (and personal liability!) or other misconduct which could lead to disqualification. This may sound worrying, but we can assess your situation relatively quickly and give you all the guidance you’ll need.