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 […]

How To Deal With Cash Flow Problems

The quick answer Firstly you need good management information. By this I mean up to date trading figures (are you making or losing money?), a balance sheet and aged debtors (can you chase debts in?) and creditors (can you defer payments?). Cash problems do not usually go away unless you deal with them head on. […]

How Do I Close My Business Down?

The quick answer When closing a business down there are three options. Which one do you think you are? An insolvent closing down. You can not pay off all the debts. A just solvent closing down. You can just about pay everyone off. A large surplus on closing down. This means some capital left to […]

What Are The Warning Signs Of Insolvency?

The quick answer The first indication that you are insolvent is often when your creditors, such as suppliers, the bank or HM Revenue and Customs, start chasing you for money and you realise that you cannot pay. In more detail How To Spot The Warning Signs Of Insolvency One common problem I come across as […]

What Is Insolvency?

The quick answer Insolvency is where you or your business cannot afford to pay your debts either in full or on time. You’ve probably heard the term on a frequent basis however do you know what being insolvent really means for a business and its directors? If you’ve found yourself asking “what is insolvency?”, we’ve […]

How Do I Close An Insolvent Firm Of Solicitors?

The quick answer There are special rules relating to solicitors as they are regulated by the Solicitors Regulation Authority (the “SRA”). An insolvent firm of solicitors cannot just be sold in Administration or closed and liquidated. Careful consideration needs to be taken of how the SRA will react as they have the right to intervene […]

Continuing To Trade Whilst Insolvent – What Can Happen?

The quick answer If you trade as a limited company and allow the situation to get worse you can become personally liable for all the debts. You may also be struck off from being a director if you have acted improperly.  The main areas of concern for directors are Wrongful Trading (although this has been […]

Are Directors Liable For The Debts Of The Business?

The quick answer There are three answers to the question of whether directors are liable for the debts of the business: Limited companies have directors and they are not normally liable for the company debts unless they have specifically guaranteed them, for example, a bank may have asked for a personal guarantee. Partnerships have partners. […]