Company Insolvency (or Liquidation)

Company Insolvency: the 5 costly mistakes Directors make

Allowing compulsory liquidation from a disgruntled creditor, the bank or HMRC to proceed

This may seem like an easy way to close the business but it will mean increased scrutiny of your conduct and financial transactions and a more robust approach to investigations, and should be avoided.

Trading whilst insolvent (wrongful trading and possible misfeasance)

This applies whether you are aware the company is insolvent or not and can make you personally liable for some or all of your company’s debts. It can also result in you being disqualified as a Company Director.

Preference payments to a creditor, a lender holding a personal guarantee or a connected party

You can be held liable to repay any payments made, whilst the company is insolvent, which benefit one creditor over another, or benefits you personally.

The full balance on an overdrawn Directors Loan Account

At the point of insolvency you become personally liable for an overdrawn Directors Loan Account. We’ll show you how to minimise this liability.

The cost of losing out on beneficial business restart options

Many Directors miss out on the benefits of a Pre-pack administration or the opportunity to buy back key business assets when starting up in business again. our Smarter Insolvency Service makes sure these options are directly available to you.

Company insolvency or liquidation is uncharted territory for many Directors, however there’s now a smarter way to handle it.

It all starts with a conversation

Our consultations are free and totally confidential (video or phone call).

We allow up to 45 minutes for the first one, which you’ll find relaxed, informative but very much to the point.

It’s the quickest and most effective way to get your specific questions answered and find out exactly where you stand.

Book your appointment here, you’ll be glad you did.

We are Accountants and Business Advisors with a totally new approach to Company Insolvency

IT PROVIDES BETTER PROTECTION FOR DIRECTORS, HELPS TO MINIMISE YOUR PERSONAL LIABILITY AND GUIDES YOU THROUGH THE FULL INSOLVENCY PROCESS

Here's how we can help you avoid the costly mistakes

You get a professional in your corner, on your side from day one, who will guide you through the entire insolvency process and out the other end.

We assess your current situation and help you determine whether your company is insolvent or not

If your company is viable we will refer you to one of our restructuring specialists and quote you separately for these services. If not we will discuss the insolvency process with you and how it works.

Our consultations are free, and you may require more than one, however the charge to you for this initial part of the process is £NIL.

We identify the risk factors which are likely to impact you adversely, and put a plan of action in place

This will address both legal and financial issues, and includes, for example, negotiations with the insolvency practitioner to minimse your liability with an overdrawn Directors Loan Account

If you decide to proceed with liquidating the company, we need an instruction from the Directors, however charges at this stage are £NIL.

We introduce you to one of the trusted insolvency practitioners we deal with on a regular basis.

We complete the initial fact find and financial assessment, and help you complete the Statutory Statement of Affairs. The insolvency practitioner is required for the formal insolvency process.

The insolvency practitioner will quote you a competitive rate for the insolvency and pays us from the insolvency fee, so you don’t have to.

We guide you through the full insolvency process as safely and quickly as possible.

We’re keen to see you through this process intact, so we can offer our business restart services, which include Pre-pack administration, asset buy back options, commercial funding and other key services.

If you’re looking to start up again, our services will help you hit the ground running and we’re happy to discuss prices to suit your circumstances.

Find out more about the safer way for Directors to navigate the insolvency process and why you don’t pay any extra for our services.

Insolvency changes the normal rules of operation

YOUR RESPONSIBILITIES AS A DIRECTOR CHANGE, AND YOU MUST BE AWARE OF THESE. CLICK THE LINK BELOW FOR MORE INFORMATION ON INSOLVENCY, INCLUDING OUR SMARTER INSOLVENCY SERVICE.

Time is a key element in the risks Directors face from insolvency

The point in time where insolvency occurs

The point in time that a company becomes insolvent is very important, as this is the time from which your responsibilities as a Director change, and from which you can become personally liable.

Not taking action in time can prove costly and personally damaging for Directors.

Directors are expected to act reasonably and timeously

Directors are expected to be aware of the financial circumstances of their company and to act according to their responsibilities. The time at which professional advice is sought and action taken towards a resolution are important determinants of potential personal liability such as financial penalties or compensation orders from the Insolvency Service.

Timing is crucial if you have an overdrawn Directors Loan Account

At the point of insolvency you become personally liable for the balance on an overdrawn Directors Loan Account and this must be dealt with before an insolvency practitioner is appointed to mimimise your personal liability. We’ll show you how to do this.

The key point here is that if you are worried about insolvency then you need to take action. The quickest and most effective way is a direct consultation. Book yours here (video call or phone call).