What is wrongful trading in company insolvency?
What is wrongful business trading? Wrongful trading happens when a director keeps trading even after knowing the company is broke and unlikely to bounce back financially. Section 214 of the Insolvency Act 1986 deals with wrongful trading and can make directors personally responsible for the company’s debts if found guilty. What do we mean […]
SEIS/EIS loss relief in insolvency and liquidation
What is SEIS/EIS loss relief and when can I make a claim? The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) offer tax relief for investing in eligible early-stage and growing companies. Investing in private firms comes with risks, so these tax reliefs aim to boost financial rewards and promote investment. The main […]
Limited Company Fraudulent Trading Explained
What is Fraudulent Trading? Fraudulent trading occurs when a company conducts business with the aim of intentionally misleading and defrauding its creditors. This is a criminal offence, and being proven guilty of such actions can result in significant consequences at both a personal and business level. Consequences encompass personal responsibility for company debts, disqualification from […]
How to liquidate a company?
Find out how you can close down a solvent or insolvent company Closing down a limited company formally involves liquidation. There are three methods: two initiated voluntarily by company directors, and one arising from creditor action (Compulsory Liquidation). This article explains the company liquidation process, details each method, and outlines the director’s role. Exploring […]
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. […]