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# Kirks Insolvency

## Sitemaps
[XML Sitemap](https://www.kirks.co.uk/sitemap_index.xml): Includes all crawlable and indexable pages.

## Posts
- [Dan Jeeves promoted to Partner](https://www.kirks.co.uk/dan_jeeves_partner/): We are pleased to announce that Daniel Jeeves has been promoted to Partner at Kirks.
- [Understanding Corporate Insolvency: A Comprehensive Guide for CEOs](https://www.kirks.co.uk/understanding-corporate-insolvency-a-comprehensive-guide-for-ceos/): Facing corporate insolvency can be daunting, but it doesn’t automatically result in a company facing liquidation. Many businesses recover from being insolvent and the process itself can be a catalyst for restructuring, personnel change, and a new focus.
- [New law – Crackdown on directors who dissolve companies to evade debts](https://www.kirks.co.uk/new-law-crackdown-on-directors-who-dissolve-companies-to-evade-debts/): Rogue directors who dissolve their companies by striking off and avoid paying liabilities to staff, creditors and the taxpayer can now be disqualified from being a director.
- [Charities – What to do when they get into financial trouble](https://www.kirks.co.uk/charities-what-to-do-when-they-get-into-financial-trouble/): Charities are unusual in that they are not like a business owned by its shareholders. The trustees (or directors) of a charity are often acting in a voluntary capacity.
- [Debentures and how to use them to your advantage](https://www.kirks.co.uk/debentures-and-how-to-use-them-to-your-advantage/): A debenture is a legal mortgage taken on a limited company to secure a loan, an overdraft or invoice discounting. They are often used by banks and factoring companies.
- [Voluntary arrangement – what is it?](https://www.kirks.co.uk/voluntary-arrangement-what-is-it/): A voluntary arrangement is a legally binding agreement between an individual, a partnership or company and all its creditors.
- [What can go wrong for the directors on insolvency?](https://www.kirks.co.uk/what-can-go-wrong-for-the-directors-on-insolvency/): For most company directors insolvency is not something that they have experienced before.
- [What can employees claim in a liquidation?](https://www.kirks.co.uk/what-can-employees-claim-in-a-liquidation/): We often see companies that have been established a long time that cannot afford to downsize and make staff redundant due to the costs.
- [Insolvency News – Autumn 2021 Newsletter](https://www.kirks.co.uk/insolvency-news-autumn-2021-newsletter/): October 2021 Newsletter
- [New rules to tackle insolvent but struck off companies](https://www.kirks.co.uk/new-rules-to-tackle-insolvent-but-struck-off-companies/): This new legislation gives the Insolvency Service the power to revisit dissolved companies that took Bounce Back Loans and Coronavirus Business Interruption Loans that have closed and then the business has just started again elsewhere.
- [Who gets paid first when a company goes into liquidation?](https://www.kirks.co.uk/who-gets-paid-first-when-a-company-goes-into-liquidation/): David Kirk’s latest article published in the London Gazette can be found here: https://www.thegazette.co.uk/insolvency/content/103900
- [Bounce Back Loans](https://www.kirks.co.uk/bounce-back-loans/): Will I be personally liable for a Bounce Back Loan if I close my company?
- [What to do if you receive a winding up petition from HMRC](https://www.kirks.co.uk/what-to-do-if-you-receive-a-winding-up-petition-from-hmrc/): Read David Kirk's latest article published in the London Gazette.
- [London Gazette Football article](https://www.kirks.co.uk/london-gazette-football-article/): I wrote an article about "What happens if a football club goes into Administration?" which was published in the London Gazette on the 4th June 2020 which you can view online.
- [We are the No 1 Insolvency Practice in Bristol](https://www.kirks.co.uk/we-are-the-no-1-insolvency-practice-in-bristol/): Kirks were ranked as the top insolvency firm by case volume in the year to 31st December 2018 in Bristol. This was by Insolytics a national insolvency data monitoring firm.
- [Poole-based insolvency firm, Kirks, appoint leading expert](https://www.kirks.co.uk/poole-based-insolvency-firm-kirks-appoint-leading-expert/): Poole-based Insolvency firm, Kirks, has appointed a leading insolvency expert to manage the Poole office.
- [Accelerated Payment Notices (APN) – What They Mean For You](https://www.kirks.co.uk/apn-guide/): If H M Revenue and Customs believe you have been involved in reducing your tax bill using a tax avoidance scheme they can serve an Accelerated Payment Notice (APN) on you. This gives you just 90 days to pay the tax due on the notice and replaces any previous payment plan you may have had. You cannot delay payment by lodging an appeal although you can contact them if there are any obvious errors.
- [Are Dividends Illegal In The Run Up To Insolvency?](https://www.kirks.co.uk/dividends-illegal-run-insolvency/): The short answer is yes – you can only normally pay dividends from distributable reserves (money left over after settling all costs and which the business can afford to pay).
- [Devon Live look to Kirks Insolvency for explanations to increased business closures throughout the city centre](https://www.kirks.co.uk/devon-live-business-closure-interview/): Following a number of recent business and store closures throughout Devon and the Exeter City centre, popular news source Devon Live decided to meet with David Kirk to discuss the issues facing the region and what may be behind the worrying trend.
- [Alison Byrne, Licensed Insolvency Practitioner joins Kirks Insolvency in Bristol](https://www.kirks.co.uk/alison-byrne-licensed-insolvency-practitioner-joins-kirks-insolvency-bristol/): We are pleased to announce that well-known local Insolvency Practitioner Alison Byrne is joining Kirks Insolvency to head up the Bristol office of Kirks. Alison took over the family firm Byrne Associates in the year 2000.
- [How fast can I liquidate a company under the new insolvency rules?](https://www.kirks.co.uk/fast-can-i-liquidate-company-new-insolvency-rules/): The answer is seven days. New insolvency rules came in on the 6th April 2017 which has changed the way companies go into liquidation. There is no longer a need for a physical creditors meeting unless 10% of creditors request it.
- [An easier time for directors under the new Insolvency Rules?](https://www.kirks.co.uk/easier-time-directors-new-insolvency-rules/): The Insolvency Rules 1986 are being replaced by the new Insolvency Rules 2016 that will come into effect on the 6th April 2017. The overall purpose is to reduce red tape, make communication with creditors easier (using the internet) and trying to make the whole process cheaper so as to increase the return to creditors.
- [How to “Liquidate” for £10](https://www.kirks.co.uk/how-to-liquidate-for-10/): If the Company has no funds to pay for Liquidation the Directors can take steps to apply for the dissolution of the Company. This means an application is made to strike the company off for a fee of only £10.
- [New Kirks Insolvency Hereford office opens](https://www.kirks.co.uk/new-kirks-insolvency-hereford-office-opens/): We are pleased to announce the opening of our new Hereford office.
- [Will Brexit increase insolvencies?](https://www.kirks.co.uk/will-brexit-increase-insolvencies/): As a Liquidator of businesses and a Licensed Insolvency Practitioner I have had a number of people say to me today that “I bet you are going to be busy now”.
- [Will the Brexit Decision Tip Companies Into Insolvency?](https://www.kirks.co.uk/will-brexit-decision-tip-companies-insolvency/): In my opinion, the Brexit will without a doubt tip companies into insolvency. An actual exit from the EU would cause substantial economic disruption to the UK economy for some time.
- [The Government Pension Protection Fund – Guidance For Insolvency Practitioners](https://www.kirks.co.uk/the-government-pension-protection-fund/): The government Pension Protection Fund (“PPF”) has issued guidance to insolvency practitioners when acting as administrator in a pre-pack from 1st July 2015.

## Pages
- [Cases](https://www.kirks.co.uk/cases/): If you require access to this area please contact us for a login.Please login using the form below:
- [News](https://www.kirks.co.uk/news/)
- [Legal statement](https://www.kirks.co.uk/legal-statement/): The information provided on or in connection with this site is designed to provide general background about a variety of topics and will not necessarily apply to individual or specific circumstances. The content of this site must not therefore be regarded as constituting advice and must not be relied upon as such. Users must please seek specific advice in respect of all issues or problems.
- [Guides & Downloads](https://www.kirks.co.uk/guides-downloads/): We know that insolvency and liquidation can be full of jargon which is why we offer these free downloadable guides. Whether you want to know more about liquidation, administration, CVA or you have some queries regarding bankruptcy; simply click and download the relevant guide.
- [How to fill in a proof and proxy form](https://www.kirks.co.uk/business-insolvency-advice/how-to-fill-in-a-proof-and-proxy-form/): ADVICE
- [COVID-19 Advice](https://www.kirks.co.uk/business-insolvency-advice/covid-19-advice/): ADVICE
- [Time to Pay Arrangements](https://www.kirks.co.uk/business-insolvency-advice/time-to-pay-arrangements/): ADVICE
- [The Five Options of Insolvency](https://www.kirks.co.uk/business-insolvency-advice/the-five-options-of-insolvency/): ADVICE
- [Sole Trader or Partnership](https://www.kirks.co.uk/business-insolvency-advice/sole-trader-or-partnership/): ADVICE
- [Limited Company](https://www.kirks.co.uk/business-insolvency-advice/limited-company/): ADVICE
- [Business Insolvency Advice](https://www.kirks.co.uk/business-insolvency-advice/)
- [Company Liquidation](https://www.kirks.co.uk/faq-topics/company-liquidation/): Liquidation is the process of closing a business and selling the assets of the company to pay back its debts (they are called creditors). Getting a company into liquidation usually takes 8 to 14 days.
- [Swansea](https://www.kirks.co.uk/find-us/swansea-insolvency-liquidation/): Email
- [London](https://www.kirks.co.uk/find-us/london-insolvency-liquidation/): Email
- [Plymouth](https://www.kirks.co.uk/find-us/plymouth-insolvency-liquidation/): Email
- [Hereford](https://www.kirks.co.uk/find-us/hereford-insolvency-liquidation/): Email
- [Poole](https://www.kirks.co.uk/find-us/poole/): Email
- [FAQ Topics](https://www.kirks.co.uk/faq-topics/)
- [Bristol](https://www.kirks.co.uk/find-us/bristol-insolvency-liquidation/): Email
- [Exeter](https://www.kirks.co.uk/find-us/exeter-insolvency-liquidation/): Email
- [Careers](https://www.kirks.co.uk/about/careers/): We are a unique team of insolvency experts at the leading edge of business restructuring and insolvency based in the Southwest and Wales.
- [Testimonials](https://www.kirks.co.uk/about/testimonials/): ★★★★★
- [Insolvency costs & fees](https://www.kirks.co.uk/about/insolvency-costs-fees/): The first part is the pre-appointment. For a liquidation this means us writing to shareholders and creditors calling a deemed consent meeting. We also help the directors prepare a report to creditors showing the business history and the current state of its finances.
- [Why use Kirks](https://www.kirks.co.uk/about/why-use-kirks/): Why are Kirks right for you? As experienced licensed insolvency practitioners, here are a few reasons our clients tell us why they chose us.
- [Solicitors](https://www.kirks.co.uk/solicitors/): Most of the cases we deal with are referred to us. This may be by a solicitor who:
- [LPA Receiver](https://www.kirks.co.uk/lpa-receiver/): We act as Law of Property Act Receivers for secured lenders to recover their loans.
- [Accountants advice](https://www.kirks.co.uk/accountants-advice/): Most of the cases we deal with are referred to us by an accountant. This may be by an accountant who has spotted:
- [Find Us](https://www.kirks.co.uk/find-us/): Kirks are licensed insolvency practitioners based in the UK. Our main office is in Exeter where the firm started in 1992 and we have other offices throughout the South of England and Wales as shown below. We can usually meet you on the same day at one of our offices, your business address or somewhere nearby if you prefer. With email, telephone and Zoom or Skype we can also do all of the meetings and processes online if you prefer.
- [Care](https://www.kirks.co.uk/sectors/care-home/): Care businesses that look after the elderly or infirm have three main financial risks.  These are:
- [Manufacturing](https://www.kirks.co.uk/sectors/manufacturing-insolvency/): There is a pattern with the types of manufacturing business that we help out. They are rarely new businesses and have usually been established for many years. They also tend to have a long serving workforce and the company can not afford the redundancy costs to slim the business down.
- [Transport](https://www.kirks.co.uk/sectors/transport-insolvency/): This is a tight margin and competitive business. It also requires a large investment in high value assets which use up capital to buy or create leasing overheads.
- [Schools](https://www.kirks.co.uk/sectors/school-insolvency/): Privately run and owned schools can be very profitable but can lose money quickly if they drop below the critical level of break-even pupil numbers. Schools have been faced with a number of challenges recently, including VAT applied to school fees, paying full business rates and an increase in the contribution to the teachers pension scheme from 23.68% to 28.68%.
- [Retail](https://www.kirks.co.uk/sectors/retail-insolvency/): We all know that retail businesses have had a hard time lately. High rent and rates are a fixed overhead as our staff costs to keep a shop open. Even online businesses have suffered as marketing costs have risen as web search terms become more expensive.
- [Recruitment](https://www.kirks.co.uk/sectors/recruitment-insolvency/): These businesses have high staff costs and irregular income (fees for placing staff) and often substantial payrolls if they supply agency staff on low margins. They can swing from very profitable to loss making very quickly. They also tend to rely on key staff who develop a strong bond with their clients which is a risk if they then leave.
- [Professional services](https://www.kirks.co.uk/sectors/professional-services/): These types of businesses tend to have high overheads in salary and wage costs and find it difficult to react quickly in a downturn because of the costs and complexity of making redundancies. They also tend to have expensive and long property leases.
- [Hospitality](https://www.kirks.co.uk/sectors/hospitality-insolvency/): If you are under financial pressure we can help. You maybe running a hotel, restaurant, cafe or pub. One key question we will ask you early on is do you want to try and carry on? If the answer is yes we will try and help you do that. If the answer is no then we will help you with a more organised closing down. 
- [Energy](https://www.kirks.co.uk/sectors/energy-insolvency/): Investment in energy production such as waste to energy often attracts investors looking for Enterprise Investment Scheme tax relief. One way for those investors to maximise their tax claims (if the project goes wrong) is to put the company into liquidation or administration as this means they can claim a further tax deduction on the write off.
- [Contractors](https://www.kirks.co.uk/sectors/contractor-insolvency/): As a contractor you may only work for one or two customers. Quite often the nature of the working relationship will be almost as employer and employee but there are substantial tax savings to using a company (on both sides) to working as a contractor.
- [Construction](https://www.kirks.co.uk/sectors/construction-insolvency/): Construction is the number one industry sector we deal with. It is not house developers that get into trouble but the contractors who are working for them or the local authorities. Construction is a tough game and it is a competitive business. Wage and employment costs are high.
- [Charities](https://www.kirks.co.uk/sectors/charity-insolvency/): If you need to close an insolvent charity the usual way to do that is using the Creditors Voluntary Liquidation process.
- [Agriculture & Farming](https://www.kirks.co.uk/sectors/agriculture-farming/): Farming has its own set of financial pressures with large swings in profitability. We provide confidential and supportive advice to farming businesses.
- [Pre-pack Administration](https://www.kirks.co.uk/insolvency-services/pre-pack-administration/): Pre-pack administration is a type of company administration process, where the sale of a business and any assets are agreed prior to the administrator being appointed. This differs from the standard administration process where part of the administrator’s role is to market the business for sale or consider alternative options if a sale is not viable.
- [Members’ Voluntary Liquidation](https://www.kirks.co.uk/insolvency-services/members-voluntary-liquidation/): Kirks Insolvency offers MVL services to businesses across the UK from our various office locations.
- [Creditors Voluntary Liquidation](https://www.kirks.co.uk/insolvency-services/creditors-voluntary-liquidation/): When you first contact us we will assess your finances and explain the options open to you. It is probable that liquidation will be the solution as this is the most likely route directors choose to take because it is quick, cost effective from £3,000 + VAT and does not stop you starting a business again. It also usually does not affect your personal credit rating.
- [Individual Voluntary Arrangements](https://www.kirks.co.uk/insolvency-services/individual-voluntary-arrangements/): An Individual Voluntary Arrangement (also known as an IVA) is an agreement in writing between an individual, called the debtor and their creditors. It is used as a solution to avoid bankruptcy.
- [Company Voluntary Arrangements](https://www.kirks.co.uk/insolvency-services/company-voluntary-arrangements/): There is an abundance of information to be found on the internet about company voluntary arrangements (CVA’s), which can often come across as a good idea. You do not need to close and liquidate, you can in fact keep going, keep your bank account and trading name and your creditors can also get something back and not see it all go to waste in a liquidation and closure.
- [Business Rescue](https://www.kirks.co.uk/insolvency-services/business-rescue/): The key to a successful business rescue is taking action early on. That comes from accepting the reality that the business is in trouble. It is sometimes hard for a business owner or board of directors to recognise that soon enough.
- [Bankruptcy](https://www.kirks.co.uk/insolvency-services/bankruptcy/): Bankruptcy is a big step, but our advisors are here to listen and help you understand the options available to you, so that you can make the best decision about your financial future.
- [Administration](https://www.kirks.co.uk/insolvency-services/administration/): What you need to know
- [Company Administration](https://www.kirks.co.uk/faq-topics/company-administration/): Company Administration is a process whereby an insolvency practitioner, like Kirks, is appointed as an administrator to restructure a business. The aim of the administrator is to turn the business into a profitable company or initiate the sale of the company to preserve value and employment.
- [FAQs](https://www.kirks.co.uk/faqs/): Whether it is liquidation, administration or winding up petitions, insolvency can take many forms for businesses. As licensed insolvency practitioners we have helped over 1,000 business steer a route through their financial problems and are well placed to help you whatever your situation.
- [Sectors](https://www.kirks.co.uk/sectors/): Our services
- [Insolvency Services](https://www.kirks.co.uk/insolvency-services/): Our services
- [About](https://www.kirks.co.uk/about/): About us
- [Blog](https://www.kirks.co.uk/blog/)
- [Home](https://www.kirks.co.uk/): Is your business under financial pressure?Are you struggling to pay creditors?
- [Privacy Policy](https://www.kirks.co.uk/privacy-policy/): Kirks Insolvency understands your right to privacy and is committed to protecting it. We have designed our website so that you can visit it without identifying yourself or revealing any personal information if you wish.
- [Sample Page](https://www.kirks.co.uk/sample-page/): This is an example page. It's different from a blog post because it will stay in one place and will show up in your site navigation (in most themes). Most people start with an About page that introduces them to potential site visitors. It might say something like this:
- [Partnerships](https://www.kirks.co.uk/faq-topics/partnerships/): Partnerships may have limited liability if they were formed as a Limited Liability Partnership. If not then an unregistered partnership will result in the partners being personally liable for the debts.
- [Insolvency](https://www.kirks.co.uk/faq-topics/insolvency/): Insolvency comes in many forms including: Liquidation, Administration, Bankruptcy and Voluntary Arrangements. This section covers a range of questions.
- [Personal bankruptcy](https://www.kirks.co.uk/faq-topics/personal-bankruptcy/): Bankruptcy occurs when a business or individual cannot repay the debts owed to creditors. You can make yourself or your business bankrupt or be forced into it by one of your creditors.
- [Pre-Pack Administration](https://www.kirks.co.uk/faq-topics/pre-pack-administration/): A Pre-Pack Administration is where the buyer of the business has been agreed before the date of the Administration order. This process is controversial and is covered by special reporting rules.
- [Members Voluntary Liquidation](https://www.kirks.co.uk/faq-topics/members-voluntary-liquidation/): Members Voluntary Liquidation (MVL) is a voluntary procedure where a company with net assets over £25,000 is put into liquidation. We usually charge fixed fees for this work.
- [Voluntary Arrangements](https://www.kirks.co.uk/faq-topics/voluntary-arrangements/): Voluntary arrangements are viable options if the business still has a future. They can fall into two categories: Company Voluntary Arrangements and Individual Voluntary Arrangements.
- [General Queries](https://www.kirks.co.uk/faq-topics/general-insolvency-questions/): Understanding what insolvency means for your business can be daunting. Our FAQs section provides a range of answers to help you come to a decision. If you can not find an answer please email us.

## FAQs
- [What is a Debenture?](https://www.kirks.co.uk/faqs/what-is-a-debenture/): A debenture is a loan agreement in writing between a borrower and a lender registered at Companies House.
- [Can I stop my company being wound up?](https://www.kirks.co.uk/faqs/can-i-stop-my-company-being-wound-up/): Yes you can by asking for the hearing of the winding up petition to be adjourned because you need more time to pay or because it is disputed. Of course, if the claim is correct and you have the funds you can just pay it (plus the legal costs that will be added).
- [How do I remove a liquidator?](https://www.kirks.co.uk/faqs/how-do-i-remove-a-liquidator/): It depends whether a) the liquidator is just the proposed liquidator and has not yet been appointed or b) they have already been appointed by creditors. 
- [If I close or liquidate a limited company will I be personally liable for the tax debts?](https://www.kirks.co.uk/faqs/if-i-close-or-liquidate-a-limited-company-will-i-be-personally-liable-for-the-tax-debts/): No. As a director or shareholder, you will not be personally liable for the tax debts of a limited company. However, there are some very exceptional circumstances where you can be. They are rare - see more below.
- [Do I have to attend the creditors meeting?](https://www.kirks.co.uk/faqs/do-i-have-to-attend-the-creditors-meeting/): If you are a company director and are the proposed chairperson of the creditors meeting then yes you do have to attend the meeting. Normally all directors are asked to attend the creditors meeting (if there is one in person or online) to explain what happened and answer reasonable questions from creditors.
- [What Happens When a Charity is Insolvent?](https://www.kirks.co.uk/faqs/what-happens-when-a-charity-is-insolvent/): The charity Trustees or Directors need to take immediate action to make sure the financial situation does not get any worse. The legal definition of insolvent means a) either the charity’s liabilities exceed its assets or b) it is unable to pay it’s debts as they fall due.
- [Are Insolvency Practitioners Regulated?](https://www.kirks.co.uk/faqs/are-insolvency-practitioners-regulated/): Yes, they are. Licenced Insolvency Practitioners are regulated by one of three professional bodies.
- [Are Insolvency Payments Taxable?](https://www.kirks.co.uk/faqs/are-insolvency-payments-taxable/): The usual answer is yes, but I am assuming that ‘payment’ means a payment out to you and therefore you are receiving the money. There are two types of payment paid out of a liquidation. The first type is to shareholders for share capital plus profits and the second is repayment of a debt.
- [How Long Does Insolvency Last?](https://www.kirks.co.uk/faqs/how-long-does-insolvency-last/): It depends on what type of insolvency procedure you are in but usually, the insolvency lasts about one year.
- [Is there stamp duty on a distribution in specie in a solvent liquidation?](https://www.kirks.co.uk/faqs/is-there-stamp-duty-on-a-distribution-in-specie-in-a-solvent-liquidation/): It depends what the asset is and if it has a loan or mortgage on it. If it is a freehold property with no loan secured on it then there will be no Stamp Duty Land Tax (“SDLT”). The property is transferred to shareholders debt free after the members voluntary liquidation date.
- [What Happens If I Can’t Afford to Liquidate My Company?](https://www.kirks.co.uk/faqs/what-happens-if-i-cant-afford-to-liquidate-my-company/): Usually, a creditor like HM Revenue and Customs will petition to wind the company up and it will then be put into liquidation. There are still alternatives though – more on these below.
- [Do I need to repay my directors loan before liquidation?](https://www.kirks.co.uk/faqs/do-i-need-to-repay-my-directors-loan-before-liquidation/): No, you do not need to.
- [What is Partnership Administration?](https://www.kirks.co.uk/faqs/what-is-partnership-administration-2/): This is a Court order to protect a partnership from legal action. You need a Licensed Insolvency Practitioner like us to act as the Administrator.
- [What are the new rules governing connected sales in pre-pack Administrations?](https://www.kirks.co.uk/faqs/what-are-the-new-rules-governing-connected-sales-in-pre-pack-administrations-3/): New rules governing the connected sale in pre-pack Administrations come into force on the 30th April 2021. This will mean that a company must be in Administration for at least eight weeks before the substantial business and assets can be sold to a connected party.
- [What is an Insolvency Practitioner?](https://www.kirks.co.uk/faqs/what-is-an-insolvency-practitioner/): A Licensed Insolvency Practitioner is a qualified professional who has an insolvency licence. Insolvency and dealing with businesses and individuals with debt is a regulated profession. You can not do this work without having passed an exam, being the member of a professional body and having an insolvency licence.
- [How safe is my money in a Members’ Voluntary Liquidation?](https://www.kirks.co.uk/faqs/how-safe-is-my-money-in-a-members-voluntary-liquidation/): It is very safe.
- [Will my CBIL loan be written off if I close?](https://www.kirks.co.uk/faqs/will-my-cbil-loan-be-written-off-if-i-close/): The Coronavirus Business Intervention Loan (known as a CBIL) is a loan due by your company first. If there are insufficient company assets to repay the loan in full any shortfall up to 20% may be claimed personally from the shareholder or director that guaranteed it.
- [What Debts Are Written Off On Liquidation?](https://www.kirks.co.uk/faqs/what-debts-are-written-off-on-liquidation/): The following liabilities (also called unsecured creditors) are written off on liquidation: Trade suppliers, utilities, VAT, PAYE, Corporation tax, unsecured bank debt like Bounce Back Loans, business rates, employee claims including arrears of pay, redundancy and tribunal claims.
- [What Happens To My Bounce Back Loan On Liquidation?](https://www.kirks.co.uk/faqs/what-happens-to-the-bounce-back-loan-on-liquidation/): A Bounce Back Loan will rank with all other unsecured creditors and normally be written off on liquidation. Unsecured creditors including suppliers, Business Rates, PAYE and VAT also normally get written off on liquidation. The Bounce Back Loan is classed as an unsecured creditor and should not have been personally guaranteed.
- [Can I Liquidate Online?](https://www.kirks.co.uk/faqs/can-i-liquidate-online/): Yes everything to liquidate a company can be done online. If you want to have a meeting we can do this by video using Zoom, Teams or other services. All of the signatures that we need can be done electronically.
- [Has wrongful trading been suspended?](https://www.kirks.co.uk/faqs/has-wrongful-trading-been-suspended/): 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. 
- [My Language School Is In Trouble – What Should I Do?](https://www.kirks.co.uk/faqs/my-language-school-is-in-trouble-what-should-i-do/): The first thing you should do is work out if your language school is insolvent. This means either all your assets will not cover all your liabilities in full or you are unable to pay your debts as they fall due.
- [How To Liquidate A Limited Company](https://www.kirks.co.uk/faqs/how-to-liquidate-a-limited-company/): Firstly, you need to know that there are two types of liquidation, and to make sure you choose the right one:
- [How To Know If Your Business Is Insolvent?](https://www.kirks.co.uk/faqs/how-to-know-if-your-business-is-insolvent/): There are two legal definitions of insolvency; the first is being unable to pay your debts as they fall due and the second is your liabilities exceeding your assets. If your business doesn’t have the money or assets to pay the liabilities it owes, the company is classed as insolvent.
- [Help Me To Start Again (Phoenix)](https://www.kirks.co.uk/faqs/help-me-to-start-again-phoenix/): In some cases the right decision for a limited company will be to close and the directors to start up a new business even in the same trade or profession. This is known as a Phoenix.
- [Bankrupt Businesses – How Insolvency Practitioners Can Help](https://www.kirks.co.uk/faqs/bankrupt-businesses-how-insolvency-practitioners-can-help/): If your business is insolvent you might want to look at the alternatives than just accepting bankruptcy or liquidation. A better option may be a Company or Individual Voluntary Arrangement or by making early contact to negotiate with key creditors.
- [Our Club Is Insolvent What Should We Do?](https://www.kirks.co.uk/faqs/my-club-or-society-is-insolvent-what-should-i-do/): The first issue for a club or society is to find out who is liable for the debts?
- [My School Is Insolvent –  What Should I Do?](https://www.kirks.co.uk/faqs/my-school-is-insolvent-what-should-i-do/): If your school is losing money then you need to consider your possible options.
- [My Charity Is Insolvent – What Should I Do?](https://www.kirks.co.uk/faqs/my-charity-is-insolvent-what-should-i-do/): If your charity is insolvent the duties of Trustees changes. Instead of being there to promote the success of the charity the Trustees duty is to minimise the loss to all creditors. The risk is if you keep going and the finances get worse the Trustees could potentially be liable for the losses to creditors.
- [The Twilight Zone – Should I Be Worried About Wrongful Or Fraudulent Trading?](https://www.kirks.co.uk/faqs/the-twilight-zone-should-i-be-worried-about-wrongful-or-fraudulent-trading/): If you are a director of a limited company and it has passed the point of financial no return then you should be concerned if you allow the company to continue to trade. If the financial position gets worse you can be personally liable for the increased debts.
- [Directors – How To Avoid Disqualification](https://www.kirks.co.uk/faqs/directors-how-to-avoid-disqualification/): As a company director, if you know the financial position is getting worse it is your responsibility to do something about it.  The longer it goes on the more chance you have of being disqualified as a director. Disqualification only applies if you were a director or shadow director.
- [Insolvent Trading – What can happen to my Business?](https://www.kirks.co.uk/faqs/insolvent-trading-what-can-happen-to-my-business/): If your business is insolvent you risk being pushed into liquidation (for a company) or bankruptcy (sole trader or partnership). This means your business is forced to close, all staff are made redundant and the assets will be sold to pay the creditors like HMRC.
- [What Happens If My Business Cannot Pay Its Corporation Tax?](https://www.kirks.co.uk/faqs/what-happens-if-my-business-cannot-pay-its-corporation-tax/): If your business cannot afford to pay its Corporation Tax then HM Revenue and Customs will, after a few reminders, issue a statutory demand which is the first step in winding up your company.
- [How Do I Get My Maternity Pay If My Employer Goes Into Liquidation Or Administration?](https://www.kirks.co.uk/faqs/how-do-i-get-my-maternity-pay-if-my-employer-goes-into-liquidation-or-administration/): If your employer goes into Liquidation or Administration then your maternity pay will be paid by HM Revenue and Customs.
- [Effects Of Liquidation On A Business](https://www.kirks.co.uk/faqs/effects-of-liquidation-on-a-business/): The effects of liquidation on a business means that it will stop trading and the powers of the director’s will cease. The directors are replaced by a Liquidator whose job it is to realise the assets of the business for the benefit of all the creditors. All of the employees are automatically dismissed.
- [What Is The Difference Between A Business Liquidator And An Official Receiver?](https://www.kirks.co.uk/faqs/difference-between-a-business-liquidator-and-an-official-receiver/): The Official Receiver is a civil servant employed by the Insolvency Service who deals with compulsory liquidations and bankruptcies. A business liquidator is an individual working in the private sector and is a Licensed Insolvency Practitioner.
- [How To Have A Cheap Liquidation And Quickly](https://www.kirks.co.uk/faqs/how-to-have-a-cheap-liquidation-and-quickly/): The cheapest liquidation for an insolvent company is usually £3,000 plus vat. This is if the company has two or less shareholders, no employees and no more than 5 creditors. The cheapest solvent liquidation is £2,000 plus vat for assets held of up to £100,000.
- [How To Close A Business That Is In Debt](https://www.kirks.co.uk/faqs/how-to-close-a-business-that-is-in-debt/): How you deal with closing down a company depends on how much you owe and if there are any assets left.
- [The Business Liquidation Procedure](https://www.kirks.co.uk/faqs/the-business-liquidation-procedure/): The liquidation of a company may be the best option for an insolvent business that can no longer continue to trade profitably. Liquidation is a commonly used procedure with thousands being completed every year. You can read our very quick guide below, or continue reading for more detailed information on the processes involved.
- [How To Wind Up A Company](https://www.kirks.co.uk/faqs/how-to-wind-up-a-company/): When a limited company is insolvent it can be wound up using a Creditors Voluntary Liquidation where you choose an insolvency practitioner like us to act as liquidator.
- [How To Safely Liquidate A Limited Company With Assets](https://www.kirks.co.uk/faqs/how-tp-safely-liquidate-a-limited-company-with-assets/): Since the 1st March 2012, a limited company with assets above £25,000 has had to use a Member’s Voluntary Liquidation (“MVL”) if it wants to treat the money returned to shareholders as capital rather than income.
- [How Quickly Can I Liquidate My Company?](https://www.kirks.co.uk/faqs/how-quickly-can-i-liquidate-my-company/): You can put your company into liquidation within seven days by giving written notice to all known creditors. We would normally do this for you. Shareholders are entitled to a longer period of 14 days notice unless they consent to short notice (they often do).
- [How Do I Stop Compulsory Liquidation Happening To My Business?](https://www.kirks.co.uk/faqs/how-do-i-stop-compulsory-liquidation-happening-to-my-business/): In most cases, if your business is being pushed into liquidation, it is normally because you owe someone (a creditor) more than £750. The easiest way to stop the process is simply by paying them in full.
- [Advantages v Disadvantages Of Liquidation](https://www.kirks.co.uk/faqs/advantages-and-disadvantages-of-liquidation/): Liquidation brings a limited company to a proper close and if the directors have not personally guaranteed any debts like bank loans there is usually very little comeback. We, as liquidators, deal with the employees and creditors for you. The main disadvantage to liquidation is that you will lose the company assets.
- [Why Should I Liquidate An Insolvent Company?](https://www.kirks.co.uk/faqs/why-should-i-liquidate-an-insolvent-company/): The main reason to liquidate an insolvent company is to make it ready to close down.
- [What’s The Difference Between Liquidation And Dissolving A Company?](https://www.kirks.co.uk/faqs/whats-the-difference-between-liquidation-and-dissolving-a-company/): Liquidation means a formal closing down by a liquidator when there are assets and liabilities to be dealt with. Dissolving a company is where the business is struck off the register at Companies House because it is now inactive.
- [What Rights Does A Creditor Have In Liquidation Or Bankruptcy?](https://www.kirks.co.uk/faqs/what-rights-does-a-creditor-have-in-liquidation-or-bankruptcy/): Creditors have various rights. One is to be kept informed so they should receive reports on the progress of the liquidation or bankruptcy. This should be at least annually.
- [What Is Compulsory Liquidation?](https://www.kirks.co.uk/faqs/what-is-compulsory-liquidation/): Compulsory Liquidation is the process for a creditor (someone owed a debt) to use to force a company into liquidation in an effort to make it pay back the debt. It can also apply to Limited Liability Partnerships in the same way as limited companies.
- [What Is A Section 110 Scheme Of Arrangement?](https://www.kirks.co.uk/faqs/what-is-a-section-110-scheme-of-arrangement/): This is a solvent liquidation process that allows you to reorganise a company into two or more new companies in order to allow the trade to be split or the ownership of the shares to be split.
- [What Is A Creditors Voluntary Liquidation?](https://www.kirks.co.uk/faqs/what-is-a-creditors-voluntary-liquidation/): A Creditors Voluntary Liquidation (also known as a CVL) is where a business closes due to insolvency and goes into Liquidation. This usually happens because the company is loss making and can no longer be made profitable or the owner does not wish to continue trading.
- [What Does Liquidation Mean For My Business?](https://www.kirks.co.uk/faqs/what-does-liquidation-mean-for-my-business/): If a business goes into liquidation it means: • The business stops trading with immediate effect. • The employees are all made redundant. • The assets of the business will be sold to pay creditors.
- [What Does Liquidation Mean For Directors?](https://www.kirks.co.uk/faqs/what-does-liquidation-mean-for-directors/): When a company goes into liquidation the directors’ powers immediately cease. From this point onward directors can no longer make payments, order or sell goods, sell assets or issue orders to any employees. They will also no longer be paid but they still have a legal duty to assist the liquidator.
- [What Does A Liquidator Do?](https://www.kirks.co.uk/faqs/what-does-a-liquidator-do/): A liquidator takes control of a company when it can no longer pay its debts in full. The liquidator will make the staff redundant, close premises and sell the assets. They will then agree creditors claims so a 'dividend' can be paid to them if there are sufficient funds to do so.
- [Liquidation And Capital Gains Tax – Rules For Directors](https://www.kirks.co.uk/faqs/liquidation-and-capital-gaines-tax-rules-for-directors/): The primary rule is that capital gains tax is still due on the gain in selling an asset even if sold by the liquidator. It is an expense of the liquidation and paid in priority to any creditor claims.
- [Is Insolvency A Breach Of Contract?](https://www.kirks.co.uk/faqs/is-insolvency-a-breach-of-contract/): In most cases, yes it normally is. However, for insolvency to be a breach of contact it does depend on what is actually written in any contract between the insolvent company and the customer. For example, sometimes the terms of a contract state liquidation is a breach of contract but administration is not.
- [How Can I Stop My Business From Becoming Insolvent?](https://www.kirks.co.uk/faqs/how-can-i-stop-my-business-from-going-insolvent/): The best way to stop your business from becoming insolvent is to take advice from a Licensed Insolvency Practitioner (“IP”) like us earlier rather than later.
- [What Is Receivership?](https://www.kirks.co.uk/faqs/what-is-receivership/): Receivership is where a bank or lender appoints an Administrative Receiver who must be a Licensed Insolvency Practitioner. This can only happen on a debenture created before the 15th September 2003. After that date they must appoint an Administrator.
- [Winding Up Petitions And Bankruptcy Orders – What Is Involved?](https://www.kirks.co.uk/faqs/winding-up-petitions-and-bankruptcy-orders-what-is-involved/): If your limited company is wound up by the Court or you are made bankrupt then you will lose control of your assets and your business. A Liquidator or Trustee in Bankruptcy will be appointed to sell the assets and close the business. In both cases, this person will be a Licensed Insolvency Practitioner.
- [What Is Business Asset Disposal Relief And How Do I Get It?](https://www.kirks.co.uk/faqs/what-is-business-asset-disposal-relief-and-how-do-i-get-it/): Business Asset Disposal Relief (formerly Entrepreneurs' Relief) is a Capital Gains Tax relief that means you only pay 18% Capital Gains Tax on the first £1m of gains on the sale of qualifying business assets.
- [What Is A Winding Up Petition?](https://www.kirks.co.uk/faqs/what-is-a-winding-up-petition/): A Winding Up Petition is a legal document and is served on a company that owes more than £750. It will eventually lead to the winding up of the company forcing it into liquidation if it does not pay the debt or deal with it in an alternative way.
- [What Is Corporation Tax Liability?](https://www.kirks.co.uk/faqs/what-is-corporation-tax-liability/): A Corporation Tax Liability is owed by a limited company on either tax on trading profits, tax on a capital gain or tax on a distribution often called a section 455 liability. A section 455 liability arises from an overdrawn directors loan account not paid back within nine months of the company year end.
- [How To Dissolve A Partnership With Financial Problems](https://www.kirks.co.uk/faqs/how-to-dissolve-a-partnership-with-financial-problems/): 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”). 
- [I Have Received A Winding Up Petition – What Should I Do Next?](https://www.kirks.co.uk/faqs/i-have-received-a-winding-up-petition-what-should-i-do-next/): 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. 
- [How Can I Control Creditor Pressure](https://www.kirks.co.uk/faqs/how-you-can-control-creditor-pressure/): 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.
- [Are Shareholders Liable For Any Of The Company Debt?](https://www.kirks.co.uk/faqs/are-shareholders-liable-for-any-of-the-company-debt/): The answer is usually no. That is the whole point of a company being "limited". On liquidation only the company assets can be claimed to pay the creditors unless the shareholders have given personal guarantees.
- [The Advantages And Disadvantages Of Receivership](https://www.kirks.co.uk/faqs/the-advantages-and-disadvantages-of-receivership/): 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 LPA Receiver. The disadvantage for the borrower is they lose control of the property and may be liable for any shortfall.
- [What Is A Phoenix Company?](https://www.kirks.co.uk/faqs/what-is-a-phoenix-company/): 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.
- [What Are The Consequences Of Insolvency?](https://www.kirks.co.uk/faqs/what-are-the-consequences-of-insolvency/): Insolvency will 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. The effects of insolvency will be different for each business.
- [Insolvency And Employee Rights](https://www.kirks.co.uk/faqs/insolvency-and-employee-rights/): 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.
- [Insolvency – What Are My Options?](https://www.kirks.co.uk/faqs/insolvency-what-are-my-options/): 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.
- [How To Deal With Cash Flow Problems](https://www.kirks.co.uk/faqs/how-to-deal-with-cash-flow-problems/): 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?).
- [How Do I Close My Business Down?](https://www.kirks.co.uk/faqs/how-do-i-close-my-business-down/): When closing a business down there are three options. Which one do you think you are?
- [What Are The Warning Signs Of Insolvency?](https://www.kirks.co.uk/faqs/what-are-the-warning-signs-of-insolvency/): 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.
- [What Is Insolvency?](https://www.kirks.co.uk/faqs/what-is-insolvency/): 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 put together a guide to the definitions and also shared some helpful tips.
- [How Do I Close An Insolvent Firm Of Solicitors?](https://www.kirks.co.uk/faqs/how-do-i-close-an-insolvent-firm-of-solicitors/): 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.
- [Continuing To Trade Whilst Insolvent – What Can Happen?](https://www.kirks.co.uk/faqs/continuing-to-trade-whilst-insolvent-what-can-happen/): 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. 
- [Are Directors Liable For The Debts Of The Business?](https://www.kirks.co.uk/faqs/are-directors-liable-for-the-debts-of-the-business/): There are three answers to the question of whether directors are liable for the debts of the business:
- [Approaching Company Insolvency – Ways to Recover and Rebuild](https://www.kirks.co.uk/faqs/approaching-company-insolvency-ways-to-recover-rebuild/): There are two answers to approaching insolvency, recovering and rebuilding and it depends on whether you are a company owner or an individual. With an individual it affects your credit rating for a long time but with a company you can just set up a new one with a clean credit rating.
- [Advice For Accountants – How We Can Help](https://www.kirks.co.uk/faqs/advice-for-accountants-how-we-can-help/): We can come up with a range of choices for your client based on trying to restructure and keep their business going or helping with an orderly wind down. We know they will face lots of difficult issues that they have never had to deal with before.
- [What Is A Notice Of Intention To Appoint?](https://www.kirks.co.uk/faqs/what-is-a-notice-of-intention-to-appoint-2/): This is where a company gives Notice Of Intention to appoint an Administrator and go into administration. The filing of the Notice creates a moratorium protecting the company (or a partnership). This can be very useful to give some short term breathing space.
- [Will My IVA Bind The Spanish Bank Or Other Foreign Banks I Owe Money To?](https://www.kirks.co.uk/faqs/will-my-iva-bind-the-spanish-bank-or-other-foreign-banks-i-owe-money-to/): Yes it will. You should make sure the foreign bank are on your creditors list and that they are notified of the proposed IVA (Individual Voluntary Arrangement). If the bank debt relates to property loan abroad it is also worth notifying any management company as well as the local authority for council tax arrears.
- [I Have An Individual Voluntary Arrangement – Can I Be A Company Director?](https://www.kirks.co.uk/faqs/i-have-an-individual-voluntary-arrangement-can-i-be-a-company-director/): Yes you can still be a company director. 
- [When To Apply For A Company Voluntary Arrangement](https://www.kirks.co.uk/faqs/when-to-apply-for-a-company-voluntary-arrangement/): You should apply for a Company Voluntary Arrangement ("CVA") as soon as possible if you realise the company has a viable future but has had historical financial problems that have now been solved. The reason is that the longer you leave it, the more likely creditors will take action to force the company into liquidation.
- [What Is An Individual Voluntary Arrangement?](https://www.kirks.co.uk/faqs/what-is-an-individual-voluntary-arrangement/): An Individual Voluntary Arrangement is a legally binding restructuring of your debts into a manageable amount. Quite often it involves you paying back part of what you owe over a period of five years. It only applies to unsecured debt, which means it does not include mortgages on property.
- [What Is A Company Voluntary Arrangement (CVA)?](https://www.kirks.co.uk/faqs/what-is-a-company-voluntary-arrangement-cva/): A Company Voluntary Arrangement is a legally binding agreement between a limited company and its creditors to suspend payments. Quite often, the terms of the agreement involve freezing interest and allowing the company to pay back only part of its debts over a period of 3 to 5 years.
- [The Differences Between A CVA And IVA](https://www.kirks.co.uk/faqs/the-differences-between-a-cva-and-iva/): A Company Voluntary Arrangement (“CVA”) applies specifically to a limited company. A limited company will be registered at Companies House and have directors as well as shareholders. An Individual Voluntary Arrangement (“IVA”) applies to an individual who might be in business or not and it will affect that person’s credit rating.
- [The CVA Process Guide](https://www.kirks.co.uk/faqs/the-cva-process-a-simple-guide-for-directors/): The CVA is a proposal by the company to its creditors to pay them back all or part of the debt it owes over time. It needs 75% of creditors by value to agree to it and then it is binding on all unsecured creditors. Unsecured creditors includes tax and vat.
- [Company Voluntary Arrangements and How To Avoid a Pensions Regulator Claim](https://www.kirks.co.uk/faqs/company-voluntary-arrangements-how-to-avoid-pensions-regular-claim/): The Pension Regulator is government body that controls the Pension Protection Fund (“PPF”). The PPF may be a very large creditor in proportion to other creditors and can therefore likely influence the outcome of a Company Voluntary Arrangement (or "CVA").
- [Company Voluntary Arrangements (CVA) – Advantages Vs Disadvantages](https://www.kirks.co.uk/faqs/company-voluntary-arrangements-cva-advantages-vs-disadvantages/): A Company Voluntary Arrangement (or "CVA") is a legal mechanism to save a limited company which is agreed by shareholders and creditors.
- [Can A Company Enter A CVA When It’s In Administration?](https://www.kirks.co.uk/faqs/can-a-company-enter-a-cva-when-its-in-administration/): Yes. A limited company can enter into a Creditors Voluntary Arrangement (“CVA”) when it is in Administration as a means of exit from Administration. 
- [Tax Advice For Members Voluntary Liquidations](https://www.kirks.co.uk/faqs/tax-advice-for-members-voluntary-liquidations/): A Members' Voluntary Liquidation (or "MVL") is an efficient way for solvent companies to turn reserves into capital gain and pay just 18% tax. Shareholders who own more than 5% of the ordinary share capital of a company can usually claim Business Asset Disposal Relief.
- [What Are The Five Key Tax Hurdles Of A Members Voluntary Liquidation?](https://www.kirks.co.uk/faqs/what-are-the-five-key-tax-hurdles-of-a-members-voluntary-liquidation/): There are a few important tests to make sure the shareholders qualify for Business Asset Disposal Relief (formerly Entrepreneurs' Relief).
- [How Much Does A Members Voluntary Liquidation Cost?](https://www.kirks.co.uk/faqs/how-much-does-a-members-voluntary-liquidation-cost/): There are three costs associated with a Members' Voluntary Liquidation (called an "MVL"). The costs are a liquidator's fee, a bond and the statutory advert placed in the London Gazette. The exact cost depends on the financial situation of the business, as well as the value and category of assets held.
- [What Is A Members Voluntary Liquidation (MVL)?](https://www.kirks.co.uk/faqs/what-is-a-members-voluntary-liquidation-mvl/): A Members' Voluntary Liquidation (or "MVL") is a procedure where a company with net assets over £25,000 is put into liquidation. The money paid out to shareholders counts as capital gains and not income - which means the funds left in the company are taxed at a lower rate.  
- [What Is Bankruptcy?](https://www.kirks.co.uk/faqs/what-is-bankruptcy/): Bankruptcy means your financial affairs will be handled by a Trustee in Bankruptcy. The objective of the trustee is to sell your assets to repay your creditors.
- [Does A Winding Up Petition Mean My Business Will Go Bankrupt?](https://www.kirks.co.uk/faqs/does-a-winding-up-petition-mean-my-business-will-go-bankrupt/): A winding up petition can mean that your business will go bankrupt or into liquidation if you do nothing.
- [What Happens After Bankruptcy?](https://www.kirks.co.uk/faqs/what-happens-after-bankruptcy/): When you go bankrupt your assets pass (or vest as it is called) to a Trustee in Bankruptcy. Usually, a year later your bankruptcy will end (called being discharged)
- [What Is The Difference Between Bankruptcy And Insolvency?](https://www.kirks.co.uk/faqs/what-is-the-difference-between-bankruptcy-and-insolvency/): The term Insolvency is the term to cover all types of debt problems while Bankruptcy is the term for an individual (whether in business or not) who has been declared bankrupt. Therefore bankruptcy is a type of insolvency.
- [My Business Is Bankrupt – What Are My Options?](https://www.kirks.co.uk/faqs/my-business-is-bankrupt-what-are-my-options/): Although you may be deep in debt it may be possible to avoid bankruptcy (or liquidation if you are a partnership or company) if you have a viable business or assets to sell. However, in some cases, going bankrupt may be the best option just to give you a clear start.
- [Bankruptcy – How Does It Work?](https://www.kirks.co.uk/faqs/bankruptcy-how-does-it-work/): There are two ways in which a person can be made bankrupt in the UK: voluntarily or by creditor application.