How To Dissolve A Partnership With Financial Problems

The quick answer If the business is a solvent partnership then it will be dissolved by agreement between the relevant parties in accordance with a partnership agreement. If the business partnership is insolvent and cannot pay its debt then it will go into Liquidation, Administration or a Partnership Voluntary Arrangement (“PVA”).  In more detail There […]

I Have Received A Winding Up Petition – What Should I Do Next?

The quick answer A Winding Up petition means that someone you owe money to, which is not usually disputed, has asked the Court to wind your company up and put it into Compulsory Liquidation. A winding up petition is very serious if you can not pay off the debt.  You should contact a Licensed InsolvencyPractitioner […]

How Can I Control Creditor Pressure

The quick answer When facing creditor pressure, the best advice is to deal with that creditor directly and not ignore them. A solution may be to agree a payment plan or ask an Insolvency Practitioner to speak to them if the situation becomes more serious and you would like a barrier between you and them. […]

Can Receivership Be Stopped?

The quick answer Yes, but only if you pay off the debt due under it before the date of Receivership. Alternatively, it is worth negotiating with the lender who has the charge on the assets to give you more time to pay or to refinance the debt if this is a realistic possibility. In more […]

Are Shareholders Liable For Any Of The Company Debt?

The quick answer The answer is usually no. That is the whole point of a company being limited. On insolvency, only the company assets can be claimed to pay the creditors unless the shareholders have given personal guarantees. If the company was formed as a company limited by guarantee (these are usually clubs, societies or […]

The Advantages And Disadvantages Of Receivership

The quick answer Receivership or an LPA Receivership is used by banks to enforce their loan when a borrower defaults. The advantage to a bank or lender is they get control of the security, for example, a freehold property, so it can be sold.  They do not need to go to Court to appoint an […]

What Is A Phoenix Company?

The quick answer A Phoenix Company describes a new company that has risen again from a previously failed company. Quite often the old company will have gone into liquidation and the directors buy the assets and start trading again in the same business. It may upset creditors of the old business but is legal if […]

What Are The Consequences Of Insolvency?

The Quick Answer Insolvency will probably mean that your business will cease trading and if you are a limited company go into liquidation. If you are a sole trader or partnership you may go bankrupt and lose your personal assets such as your home. Remember that the effects of insolvency will be different for each […]

Insolvency And Employee Rights

The quick answer If you are laid off by an employer who is insolvent (which usually means the employer is going into Liquidation or Administration) you can make a claim from the Government for unpaid wages, unpaid holiday pay, redundancy and pay in lieu of notice. Usually claims take about two to four weeks to […]

Insolvency – What Are My Options?

The quick answer The earlier that you face the reality of an impending insolvency and take advice, the more options you will have. You may not have to be declared bankrupt or forced into liquidation if you do not want to be. In more detail INSOLVENCY OPTIONS FOR LIMITED COMPANIES AND LIMITED LIABILITY PARTNERSHIPS The […]