Are you worried about insolvency and cannot see a way out of your debt problem?
Anyone can be hit by debt/insolvency problems especially during an economic downturn. Unemployment, ill health, inflationary cost rises in rates, rent, and other costs, plus for businesses ever increasing global competition and customers seeking greater “bargain” prices can plunge people into an insolvency situation. What shouldn’t be underestimated is the toll insolvency can take on you and your family’s physical and psychological well-being especially as the demands and financial pressures build.
Insolvencysolicitors.org.uk (as detailed on the Solicitor Search Network site) will provide the individual, the self-employed, business partnerships, small/medium enterprises and larger companies with sound legal advise on how to deal with mounting debts. As a business there are a number of different options for you to choose that could resolve your debt issues. The first step to dealing with your insolvency problems is to consider all the options open to you and the implications of each. It should be remembered that your solicitor can provide the advice needed to seek a solution that might safeguard the company as it is in few people’s interest for your business to fail. Where required your insolvency solicitor can provide the legal assistance to make a petition to resolve your corporate insolvency under the Company Voluntary Arrangement. CVAs can help by extending the time/terms of credit which will provide relief to struggling business’ cash flow.
However where the debt problems are such that you need to undergo voluntary insolvency whereby you declare the business insolvent and currently unable to meet its outstanding debt, Company Administration is another well-used tool. This will provide the company with time to decide on the best path to take to deal with its current debt crisis. The Administrator will look at the profit making parts of the business, the assets and their value and where losses are incurring and monies due to creditors. Another possibility is voluntary liquidation and can permit the company the opportunity to close and restart. Compulsory liquidation is where a company is taken to court by its creditors.
Your insolvency solicitor will also help businesses act in accordance with Employment Law and the redundancy rights of the workforce should it be deemed necessary to reduce the workforce or close the company down - the size of the company and the number of employees affected will determine how you proceed.
