What Does Business Recovery Mean? Can my Company be Rescued?
Rescuing a financially distressed business Helping a struggling business get back on track involves terms like business rescue, recovery, and restructuring. There are various ways to do this, such as getting money for the business, reorganising how the company works and manages money, and getting official help from an insolvency expert. The Meaning of […]
Assistance when dealing with a High Court Enforcement Officer
What is a High Court Enforcement Officer and what rights do they have High Court Enforcement Officers (HCEOs) enforce judgments from the High Court and, in some instances, County Court Judgments (CCJs). Operating in England and Wales, they typically seize assets or repossess property under the Taking Control of Goods Regulations, 2013. HCEOs receive authorisation […]
What to do if you have received a seized goods letter
What is a Seized Goods Letter? When government agencies, including HM Revenue and Customs and Border Force, seize goods, a notification of seizure should be provided, identifying the items involved. The type of seized goods letter you receive depends on whether or not you were present at the time. A common notice for seized goods […]
Advice for sole traders facing insolvency
What happens to sole traders when their business becomes insolvent? As a sole trader, there is no legal separation between you as an individual and your business. If your business faces financial issues or becomes insolvent, you, as the owner, are required to cover any financial gaps and repay outstanding borrowing using your personal funds. […]
Director Duties and Responsibilities When Insolvent
Director Responsibilities when a company is trading while insolvent When you realise your company is insolvent, it becomes your responsibility as a director to act in the best interests of creditors. This may involve discontinuing trading to shield creditors from additional losses. Your company is deemed insolvent if it cannot meet its expenses and settle […]
Understanding Antecedent Transactions
Antecedent Transactions: A complete guide for company directors Before a company goes through formal insolvency processes like liquidation, there are specific transactions called antecedent transactions. These transactions can be undone by a liquidator or administrator if the company was insolvent when they happened or if they led to insolvency later on. The person in charge […]
Are directors liable for limited company HMRC tax debts?
Understanding company tax liability in insolvency In the UK, a limited company is seen as a distinct entity, legally separate from its directors and shareholders. Basically, this means the company’s funds are owned by the company, not its directors or shareholders. Similarly, any debts the business incurs are the company’s responsibility to settle, not that […]
What are voidable transactions in an insolvency process?
Which transactions could be challenged and overturned in insolvency? Voidable transactions, also referred to as antecedent transactions, are deals occurring before insolvency, which might be annulled. These transactions can pose significant issues for directors of insolvent firms. If you engage in a voidable transaction and your company is later liquidated, you may be personally responsible […]
Who can petition to wind up my company?
Find out which stakeholders can petition your company to try and close it down A Winding Up Petition is a potent legal measure creditors can use to force your business into closure. Without valid grounds to contest it, the court may issue an order for Compulsory Liquidation, resulting in the shutdown of your business. Although […]
What are the risks of trading while insolvent?
How can you protect yourself from the risks of trading while insolvent? If your business can’t meet its debts on time or lacks ample assets for its obligations, it’s likely insolvent. As a company director, your legal duty is to act in the creditors’ best interests. If your business has little chance of recovery or […]