Statutory Demands: What to do if you have been served with one
What is a statutory demand and how should you respond if you receive one? A statutory demand is typically issued by a creditor as a last request for payment before initiating a winding-up petition. Upon receiving a Statutory Demand, you must settle the owed amount within 21 days, set up a payment arrangement, or contest […]
How can a Winding Up Petition be set aside?
How challenging a Winding Up Petition can save your company A winding up petition against your company can lead to liquidation and closure swiftly. Understanding your rights in such a scenario is crucial. You may seek to have the petition ‘set aside’ by the court. This defines its cancellation, yet it’s essential to ensure your […]
Can a creditor put my company into liquidation?
Can my business be forced into liquidation by a creditor for unpaid debts? To be clear, yes. If you’re having difficulty paying creditors like suppliers, the bank, or HMRC, it’s crucial to understand the situation fully. A creditor (someone you owe money to) can initiate compulsory liquidation to shut down your business. However, you do […]
Does company liquidation affect my personal credit rating?
Could your personal credit rating be impacted by company liquidation? Generally, when your company goes into liquidation, your personal credit rating remains unaffected. This is because a limited company is seen as a distinct legal entity from its owners, which means that personal and business finances are separate. Beyond that, in certain situations, it’s not […]
Can a company in liquidation still trade?
Is it possible to continue trading in liquidation? It’s legally required to stop trading if your company becomes insolvent, leading to company liquidation, a formal closure process. Continuing to trade could lead to serious consequences as you’re obligated to maximise creditor returns and shield them from additional losses. Can I continue to trade while […]
What is Set-Off in a liquidation process?
Learn how set-off can impact the amount you owe your creditors on liquidation When a company goes into liquidation, whether it’s voluntary or compulsory, all creditors have specific rights. One of these rights is to claim any money owed to them by the company being liquidated (the debtor). Nevertheless, this process works both ways. The […]
Can my company’s debt problems affect my personal finances and credit rating?
Will company debts affect my personal credit score? If you run a limited company, your personal finances and credit score won’t be influenced by your company’s financial track record because liability is limited to the business. However, if you’re a sole trader, your personal and business finances are connected, so both can be affected. […]
Does liquidation write off company debt?
What happens to company debts and could you become liable? If your company can’t settle its debts, liquidation is an option. To liquidate your limited company, you need to appoint a licensed Insolvency Practitioner as the liquidator. They sell the company’s assets and use the money to repay your creditors, the parties you owe money […]
What actions can a liquidator take to recover company assets?
Can a liquidator recover assets for the benefit of creditors? When a company is confronted with insolvency, it becomes the responsibility of the directors to engage an insolvency practitioner as soon as possible. The practitioner will evaluate the circumstances and determine whether the business can be salvaged or if measures should be initiated to wind […]
Can a 50% shareholder liquidate a company?
Can I liquidate a company as a 50:50 shareholder? As a 50:50 shareholder, it’s not simple to sell off the company without your business partner’s agreement. If there’s a deadlock where one wants to sell and the other doesn’t, mediation could help find a solution. If not, you might have to ask the courts to […]