Contact David Kirk by clicking on his name to email him a question or call 01392 474303

01392 474303

The quick answer

Wrongful Trading was suspended on the 1st March 2020 until the 30th September 2020. This was because of the economic impact of the Coronavirus on businesses. 

In more detail

Wrongful Trading

The issue with Wrongful Trading is that the directors can be personally liable for the company debts if they keep trading and the situation gets worse (and they should have known better). 

It becomes very important to have accurate trading figures and have regular director meetings to decide if trading should continue if the business is insolvent.  If you do continue make sure you keep a record of the reasons why you think trading will improve. 

When you are insolvent and continue trading you are risking creditors money not your own and you have a duty to those creditors not to make the position worse.

 If in doubt take some professional advice.

 

More questions in this section

We have just worked with Kirks to complete the closure of our company. Everything went smoothly and professionally. I would recommend this firm and the staff who were very very helpful and quickly finalised everything. Thank you Kirks.
Carol Hill

Request a callback

Simply fill out the short form below and I will get back to you.

David Kirk - Kirks Insolvency Call Back

David Kirk

Licensed Insolvency Practitioner