What is a Transaction at an Undervalue?
What does the Insolvency Act say about Transactions at Undervalue? A transaction at an undervalue occurs when you sell or transfer a company asset for no cost or a price below market value, leading to insolvency or exacerbating existing insolvency. Understanding Transactions at Undervalue: Investigation Process If your company is facing financial difficulties and […]
What Are The Risks Associated with an Informal Company Arrangement?
Are Informal Company Creditors Arrangements Worth Your Time? An informal insolvency arrangement involves direct negotiation with creditors to reach an agreement on repaying owed money. It can be relatively simple if your creditor cooperates, but it won’t be legally binding. When creditor pressures and mounting debt become overwhelming, seeking a solution promptly is crucial to […]
How Does Company Insolvency Affect Preference Shares?
Preference shares and how are these important in company insolvency In a limited company, there are two primary types of shareholders: ordinary shareholders and preference shareholders. Ordinary shareholders receive “common” stock, while preference shareholders are issued “preferred” stock. Preference shares are typically prevalent in larger companies, especially those that have secured external investments. Distinctions […]
Insolvency and perishable goods – why you need to move fast
The importance of moving quickly to realise the value of perishable goods If your business faces insolvency, liquidation might be unavoidable if no other options exist. This involves closing the business after selling all its assets. Preserving the value of perishable goods is crucial when they contribute to the company’s worth. Whether a creditor pushes […]
Understand the rights of bailiffs and what they can take
What can a bailiff take from my home or workplace? Bailiffs have the authority to seize assets from your workplace to satisfy the debt being recovered. For limited company directors, they can only take property from the business premises that belongs to the company. However, if you are a sole trader, business debts are treated […]
Selling an insolvent business: What are your options?
Is it possible to sell an insolvent or distressed business? If your business is in financial distress or already insolvent, selling it may seem daunting, but it’s a common practice. Various parties, including turnaround specialists and entrepreneurs seeking struggling businesses, often purchase insolvent or distressed businesses. So, if your business is on the brink of […]
Help and advice when dealing with bailiffs for limited company debt
What are bailiffs’ powers with limited companies in debt? A limited company stands as a distinct legal entity from its director, meaning that if a bailiff or enforcement officer is appointed, only possessions owned by the company can be repossessed. When bailiffs are tasked with collecting a debt on behalf of a creditor, and negotiations […]
County Court Judgments: How to challenge a CCJ
How can company directors dispute a County Court Judgment (CCJ)? A company director can dispute or seek to remove a County Court Judgment (CCJ) under the following conditions: To challenge or remove a CCJ, you must submit a defence form. Is it possible to remove or challenge a CCJ? When a creditor seeks a County […]
My company is insolvent – what happens to my staff?
Understanding TUPE and redundancy pay for employees following insolvency When a company becomes insolvent, directors often worry about the fate of their employees. Despite insolvency, it’s not guaranteed that the business will shut down, and safeguards exist to protect employees. If the business is sold as a going concern, the Transfer of Undertakings (Protection of […]
What are the warning signs of company insolvency?
What are the common signs of business insolvency? If you’re concerned your company might be heading towards insolvency, watch out for warning signs. Financial troubles can sneak up slowly, making it hard for directors to notice. But the sooner you spot the issue, the more choices you’ll have. Check for these problems to see if […]