Insolvency proceedings apply to both businesses and individuals. Where a business becomes insolvent, that is it fails to satisfy a debt (of at least £750.00), you may be able to take steps to wind the company up. Equally, if an individual is unable to pay a debt (of at least £5,000.00) you may be able to take steps to petition for their bankruptcy.
“We understand that in some situations prompt action is required rather than in engaging in drawn out proceedings. Insolvency proceedings are not appropriate in every case, but where they are, it will often lead to a successful outcome”
Jamie Carr, Head of Disputes Resolution
What Insolvency advice do we provide?
Insolvency proceedings can be an effective tool for creditors, as the prospect of winding up a business up or a person being made bankrupt is often enough to prompt payment of a debt. Equally, the procedure can be acutely stressful, certainly given the potential implications of insolvency on both company officers and individuals. At Nash, we are experienced in advising both creditors and debtors on the insolvency process, which gives us a unique perspective on risks, opportunities and pitfalls.
What does the process involve?
Insolvency proceedings are not inexpensive for creditors, who need to pay the insolvency practitioners fees upfront and are unlikely to recover the full debt owed.
If a business is wound up, a liquidator will be appointed who will act in a way that returns the best results for the creditors. This may include selling assets. Once the liquidator has fulfilled its duties and there is surplus funds a payment can be made to creditors. There is therefore a significant risk in going down the insolvency route, as if there is insufficient funds the creditor does not stand to recover either their fees or debt.
Many companies which are wound up are now investigated by the Insolvency Service to determine whether company officers should be disqualified from acting as directors. This may have far reaching implications for company directors who, perhaps through no fault of their own, face the spectre of disqualification and therefore the requirement that they resign from any other.
What are the implications?
Many companies which are wound up are now investigated by the Insolvency Service to determine whether company officers should be disqualified from acting as directors. This may have far reaching implications for company directors who, perhaps through no fault of their own, face the spectre of disqualification and therefore the requirement that they resign from any other directorships. At Nash & Co, we are experienced in advising directors on their own position, in relation to insolvency and in responding to the Insolvency Service.
Ultimately, the rules surrounding Insolvency proceedings can be complex, and the procedures are expensive and stressful. Our team’s experience means we are well placed to advise both creditors and debtors, companies, directors and individuals. Should you wish to have an discrete initial discussion on your position, please contact our team.
Please contact Jamie Carr for more details. We understand that you may need clear and practical advice in a timely manner; we are here ready to help you on the choices, risks and benefits of taking action. Jamie’s email address is [email protected] and his phone number is 01752 827014