Whatever may be said of insolvency, it is an unfortunate outcome that businesses and individuals alike can often suffer. The worldwide financial crash had a huge (and detrimental in most scenarios) effect on a number of businesses and individuals and so, many fell into one insolvency form or another.
The simple test for insolvency [whether as a company or an individual] is whether or not you are able to meet your debts as and when they fall due. If the simple answer is “no”, then one of the required grounds has been met and insolvency proceedings may follow.
There are many forms to Insolvency. There are the steps taken by Creditors who are owed money. There are the steps taken by Companies and individuals to restructure payments and outgoings in order to ensure that Creditors get paid and there are those who take the appropriate steps to stave off any form of insolvency action being taken against them.
As a Company Director, you have a fiduciary duty to ensure that your Company is able to meet its debts as and when they fall due. In circumstances where you identify that there is a financial issue with your business, it is important to ensure that the correct steps are taken at the right time as this may well lead to your business being saved. An inability to manage and/or maintain your Company’s financial obligations may well place your business into a detrimental position that may lead to only one result.
Where it is possible to avoid this from occurring, we will do all we can to assist. We work closely with Insolvency Practitioners to ensure that all steps are taken to try and preserve the business and the Creditors as well as your own accountants.
Where we can, we will endeavour to renegotiate matters for you with the Company’s creditors.
Conversely, we also act on behalf of Insolvency Practitioners [who owe a statutory obligation to Creditors] in order to recover monies and/or assets belonging to Companies in order to allow realisation for the benefit of Creditors. Those actions may result in Statutory Demands being presented or a Winding Up Petition being issued with further enforcement action then being taken.
Our Insolvency work includes:
- Acting for Trustees in Bankruptcy;
- Representing Liquidators for recovery of outstanding Directors Loan Accounts;
- Representing Liquidators against former Directors for wrongful trading / transactions under value and disposals designed to put assets outside the reach of Creditors
- Presentation of Statutory Demands
- Presentation of Winding Up Petitions [Companies] and Bankruptcy Petitions [Individuals];
- Attendance and advocacy at hearings in opposition to Statutory Demands, Winding Up Petitions and Bankruptcy Petitions.
- Representing Administrators;
- Company restoration.
Our lawyers provide a full service to individuals, Companies and Insolvency Practitioners.