Accountant in Bankruptcy (Scotland)The Official appointed to monitor personal insolvency procedures. She will also act as trustee where no insolvency practitioner is nominated on a sequestration petit…
April 13th 2017
Pressure from suppliers can be overwhelming when your company is experiencing financial difficulties. Even if it is only a temporary downturn in company fortunes, the fact that a supplier can apply fo…
June 9th 2017
If you are facing pressure from HMRC regarding your company’s tax liabilities, it is reassuring to know that options are available to steer you through this stressful time. You may have become delin…
July 14th 2017
If your company owes money to HMRC or another creditor and you have been unable to settle the debt, they may take out a Distraint Order against your company. This involves the seizure of goods to the …
May 11th 2017
If you have been served a notice of enforcement, HMRC bailiffs or HMRC enforcement officers will be able to enter your property to recover unpaid debts, so it is important to understand your rights. W…
July 24th 2017
A business enters the state of insolvency when it is unable to repay money owed and fulfil financial liabilities. When directors are caught up in the day-to-day running of their company, it is very ea…
June 8th 2017
When a creditor is owed £750 or more and has attempted to collect their money without success, they may resort to sending a 21-day Statutory Demand for payment. This procedure requires no court invol…
May 25th 2017
If your company is experiencing temporary cash flow problems and is unlikely to meet its tax liabilities as they fall due, you may be able to negotiate an arrangement with HMRC to pay over a longer pe…
July 20th 2017
A winding up order can be used by creditors to enforce payment of a debt by a delinquent company. Often as an act of last resort, creditors petition the court to have the business liquidated, usually …
August 8th 2017
If there is no hope of turning your company around, the main responsibility for directors whose company can no longer pay its creditors, is to stop trading immediately. Although this seems like a dras…
August 9th 2017
When a limited company is unable to meet its liabilities as they fall due, it may be insolvent, but there is a range of options that could save the company from closure. Which option is taken depends …
August 11th 2017
A Statement of Affairs is a document detailing a company’s assets and liabilities. Generally prepared by a liquidator or appointed professional during certain insolvency proceedings, the document is…
August 15th 2017
A company is deemed to be insolvent when it cannot pay its debts as they fall due, or the value of its liabilities is greater than its assets. If you think that your company is insolvent, you must cea…
August 16th 2017
An Insolvency Practitioner’s initial aim will be to rescue a company from liquidation and subsequent closure. If this proves impossible, their role will be to realise the highest return for credito…
Applying for a County Court Judgment (CCJ) against a limited company is often the result of several attempts by creditors to recover a debt. If your company has received a CCJ, you may be wondering wh…
April 17th 2017
If pressure from your creditors has resulted in a winding up petition being issued, your options as a director are severely limited. It renders the company unable to trade without going through the co…
April 20th 2017
Many people believe that Insolvency Practitioners (IPs) are only called in once a company has actually become insolvent, but this is not the case. The role of an IP includes the provision of advice to…
April 21st 2017
When making a personal guarantee for your company’s debts, it is easy to overlook the potential consequences should the business default on its liabilities. Maybe you felt certain that the company 
Understanding the rights of your employees in redundancy is an important part of any insolvency procedure. Here we look at what happens during various administration and liquidation processes, plus th…
The Corporate Insolvency Test refers to a method of determining a company’s ability to meet its liabilities as they fall due, and whether the total value of its liabilities exceeds assets. The three…
A preferential creditor is a creditor who is granted preferential status during an insolvent liquidation by receiving the right to first payment, a hierarchy established by the Insolvency Act 1986. An…
Freezing orders are used to prevent assets being removed or disposed of by a debtor, and can be granted at any stage of legal proceedings against the recipient. The person applying must provide compel…
As a company director you must put the interests of your creditors first when insolvent. Failure to do this can result in financial penalties, personal liability for company debts, or even a prison se…
A Company Voluntary Arrangement, or CVA, offers an alternative to liquidation if your company could be viable in the future. Your appointed insolvency practitioner (IP) will look in detail at the comp…
If your company has entered administration, one of the options available if the business is deemed viable, is a Company Voluntary Arrangement (CVA). This would allow the company to continue trading un…
A notice of intent declares your intention to appoint an administrator in order to rescue your business, repay creditors and save it from liquidation. A notice of intent is a document filed at court, …
When a company becomes insolvent, a meeting of creditors is often called to explain why the business has failed and/or to vote on the next proposed step. Here we look at several routes into insolvency…
When a company enters administration or is liquidated, the conduct of directors leading up to insolvency will be investigated to find out if they have acted wrongfully or unlawfully. One type of trans…
As the director of a limited company, you have some protection from personal liability if the company becomes insolvent. Although treated as a separate legal entity, under certain conditions the ‘ve…
A licensed insolvency practitioner (IP) is authorised to act in relation to formal insolvency procedures, and they can be appointed in a number of ways. Insolvency practitioners generally have a finan…
If you fail to meet your liabilities, creditors have a wide range of actions open to them depending on the level of debt. Prior to taking initial legal action, however, they must communicate by letter…
Consultations are currently taking place on a proposed 90-day moratorium period for companies in distress. Intended to allow a ‘breathing space’ in which to consider all options in insolvency with…
Retention of Title can be a complex affair unless the clause is unambiguous in its content, and delivered in a manner that cannot be disputed by the debtor. It often forms part of a written contract b…
There are a number of ways you can mitigate the risks of insolvency as a director. Being aware of the company’s financial position is a fundamental part of your role, and on a practical basis helps …
The directors of a failing company are likely to approach an insolvency advisor or licensed practitioner initially, for advice on how to proceed. If a formal insolvency procedure is decided upon, they…
The problem of utility companies and other suppliers withdrawing their services to insolvent businesses has caused untold damage to creditor interests for some time. Vital business software services s…
An insolvent estate is left when a deceased person’s debts are greater than the total value of assets, and therefore money is owed to their creditors. The rules of bankruptcy apply to insolvent esta…
Insolvency proceedings can be started by a single creditor or group of creditors, if the debtor company owes more than £750 and the debt is not disputed. This process is called compulsory liquidation…
The time period between a creditor’s winding-up petition and the subsequent court hearing, has been termed a ‘twilight zone’ for insolvent companies. Severe restrictions are placed on their abil…
In England and Wales, the Solicitors Regulation Authority (SRA) has the power to close down professional firms under certain circumstances. They independently appoint another firm of solicitors as the…
Insolvency is a complex area that often brings to light contentious issues including the preferential treatment of a creditor, or wrongful trading by directors. These matters can bring serious ramific…
Intellectual property (IP) is a complex asset class that requires specialist valuation, but also one that can add considerable value to a company in insolvency. In fact, the total value of a company 
If your company is facing liquidation due to insolvency, the chances are you will have a number of creditors who you owe money to. One of the jobs of the Insolvency Practitioner is to recoup as much m…
A liquidator’s overall role during an insolvency procedure is to ensure that an equitable distribution of assets takes place from the insolvent company to its creditors. The liquidator must act in t…
From April 2017, changes to UK insolvency legislation mean that directors can expedite the liquidation process if their company becomes insolvent and cannot be rescued. It is often the case that direc…
When a company enters insolvency, and a liquidator is appointed to deal with proceedings, the person taking office must ensure that a fair distribution of the company’s assets takes place amongst cr…
There are various indications that a company is experiencing financial difficulty and could potentially enter insolvency, and an accountant is a crucial figure in spotting these early warning signs. W…
August 1st 2017
Cash flow issues arise for a number of reasons, but if not tackled quickly can be the catalyst for financial decline, even in the most profitable companies. Some problems are difficult to foresee, suc…
September 13th 2017
The future of the e-cigarette industry has been threatened by new regulations brought in under the Tobacco Products Directive (TPD), 2014. The new rules took effect in May 2016, and are intended to re…
Winding up a company that is unable to pay its debts involves the appointment of a licensed insolvency practitioner (IP). The process is called a Creditors’ Voluntary Liquidation, or CVL, and if you…
September 27th 2017
Obtaining reliable and up-to-date advice is crucial when your business is going through any period of change or uncertainty, but particularly so if it’s facing financial difficulties. Taking expert …
Insolvency fees can seem prohibitive when your company is facing liquidation. Business assets are no longer at your disposal, and the interests of creditors must be placed first. But there is a method…
December 6th 2017
A Trustee of a charity should be cognisant that they could face the same potential risks, both reputational and/or in respect of personal liability, as that of a director of a failed insolvent company…
October 17th 2017
When a charity becomes insolvent, it means that it cannot pay its bills as they fall due. The actions of the charity’s directors and trustees leading up to insolvency will come under scrutiny to e…
November 21st 2017
The Insolvency Act, 1986, allows for the appointment of a provisional liquidator under certain circumstances, and this effectively takes control of a company away from its directors. Provisional liqui…
May 10th 2018
Winding up petitions are often issued against limited companies registered at Companies House. A creditor petitions the court, usually as a last resort after several unsuccessful attempts have been ma…
June 4th 2018
If you are owed money by a debtor who is struggling to repay their unsecured debt, and has sought professional help to move forward, in some circumstances an Individual Voluntary Arrangement (IVA) wil…
June 25th 2018
When a company is insolvent there are a variety of consequences both to the company itself, and the director(s). These can not only be destructive to the business, but can also be detrimental to compa…
November 12th 2018
If your company has fallen into debt and is experiencing financial distress, it’s important to obtain professional help as soon as possible. If you cannot pay your bills as they fall due, or your co…
December 9th 2018
High court writs are used by creditors to enforce unpaid court judgments (CCJs). A creditor applies to the high court for a writ of execution, which can take various forms according to the circumstanc…
April 19th 2019
HMRC has regained its status as preferential creditor in insolvent liquidations, having previously been downgraded to unsecured creditor status by the Enterprise Act, 2002.
May 9th 2019
Managing the estate of an individual who died with debts is a difficult and sensitive process that requires a high level of technical expertise. If your partner – whether that’s your husband, wife…
April 20th 2019
Given the sheer magnitude of HMRC as a creditor, having PAYE arrears is a worrying situation that can lead to significant penalties being applied.
May 12th 2019
When a company is subject to a winding up petition, an advertisement is placed in the Gazette to alert other creditors.
January 7th 2020
When a limited company goes bankrupt it means there is insufficient cash available to pay the bills as they become due, or that the value of its assets is less than its total liabilities, including th…
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