Insolvency advice for Public Service Companies (PSCs)
Understanding insolvency and liability for Personal Service Companies Small companies for personal services, known as PSCs, are typically set up with a single director who works as a contractor. Operating your own limited company as a contractor in the UK has several advantages. One major benefit is the option to receive a significant part of […]
Facing a High Court Writ? Get help today
Presented with a High Court Writ Writs of Execution are issued by the High Court on behalf of creditors to reclaim the money owed to them. Now, what choices does a company have? What are my options when presented with a High Court Writ? The High Court issues Writs of Execution for creditors to […]
How insolvency affects debentures and floating charges
Debentures and floating charges in insolvency Debentures and floating charges offer protection to lenders if a company faces insolvency. In the insolvency liquidation process, a defined hierarchy dictates the order of repayment for creditors. Those with debentures or floating charges have precedence over unsecured creditors, increasing their chances of receiving payment. What are the […]
What is an unenforceable personal guarantee?
How can I check if my personal guarantee is unenforceable? Your personal guarantee could be unenforceable due to factors beyond your contract. This might include creditor misinformation, crucial omissions in the contract, co-guarantor problems, suspicions of fraud, or significant changes to the bank’s facility since your guarantee was signed. How can we say a […]
What is a Restructuring Plan?
Understanding Restructuring Plans for UK companies A Restructuring Plan enables a company to formally arrange discussions with its creditors to handle debts. For financially and operationally stressed businesses, restructuring plans are the newest tool to manage their affairs and liabilities, aiming to rescue the company from closure. While a company doesn’t necessarily need to be […]
What Options Do Sole Traders Have When Their Business Is Struggling?
Starting as a sole trader is one of the simplest ways to begin a business. Yet, if your business faces challenges, the financial impact can be more severe for a sole trader compared to a director of a limited company. As a sole trader, you may be personally responsible for any debts your company accumulates. […]
What happens to a Personal Guarantee in bankruptcy?
Are personal guarantees enforceable if you have been declared bankrupt? Personal guarantee motivates banks and other lenders to approve business loans, as it lessens their risk of losing money. If the company defaults, the lender can pursue one or more directors for payment. When offering a personal guarantee, it establishes a secondary responsibility, potentially exposing […]
Bank Account Freezing Orders: Advice for company directors
How will a freezing order affect access to company finances and assets? A freezing order stops access to a company’s money and assets equal to the debt owed to a creditor. It can also be used to prevent higher authorities from disposing of assets. If creditors think a company’s money is in danger, they can […]
Understanding Directors’ Personal Guarantees and Liquidation
What is a personal guarantee? A personal assurance is a security arrangement provided by a director of a limited company to secure company loans. Although the business is accountable for monthly repayments of the loan or finance agreement, if the company struggles to meet these obligations and goes into liquidation, the duty to repay the […]
What Is a County Court Judgment (CCJ) Against a Company?
What is a company County Court Judgment (CCJ)? A County Court Judgment, known as a CCJ, is a court order issued to an individual or a company due to non-payment of debt. For a company, this might mark the initial move towards compulsory liquidation if the outstanding debt is not promptly addressed. How Does […]