We can provide options for companies in financial trouble. If you cannot pay your debts, you are trading ‘insolvent’.
THERE ARE SERIOUS PENALTIES FOR ALLOWING YOUR COMPANY TO TRADE INSOLVENT.
Company Liquidation and / or Administration are options for companies that are unable to make debt payments, otherwise known as insolvent companies. Just like individuals, companies can also find themselves with money problems.
There are serious consequences and penalties for insolvent trading, including the risk of being sued, compensation proceedings and criminal charges. If your company is insolvent, you must get professional help and advice immediately.
DO NOT ALLOW YOUR COMPANY TO TRADE INSOLVENT.
If you’re a director of a company, you have legal obligations to deal with your debts, shareholders and creditors in an appropriate way. Depending on whether you decide to go into company liquidation or administration, your responsibilities, powers and control will also change.
You should consider the benefits of going into voluntary company liquidation & administration, rather than a creditor starting liquidation through court proceedings.
The various voluntary company liquidation & administration options can offer a company the option to:
- Resolve the company’s direction quickly.
- Save a company’s business.
- If the business can’t be saved, winding up the company’s affairs so that it results in better return for creditors (including employees and shareholders).
- Involve an outside person ( a liquidator or administrator), who is independent and suitably qualified, to take control.
- Take control and make decisions before a creditor starts legal proceedings for company liquidation and administration.
- Avoid legal penalties and consequences for failing to deal with company insolvency appropriately.
- Save your company’s reputation and your own reputation as a company director.
- Get professional advice about your legal obligations as a company director.
Is your company having trouble paying it’s debts? Find out about Company Liquidation & Administration options today.