When a company is unable to pay its debts, they are regarded as being “insolvent.”
There are different types of insolvency that that we can assist with, depending on your individual circumstances.
Here are Smith & Barnes we offer a free initial consultation to discuss your business in detail so we can fully understand the position and how to help you best.
Discussed below are some of the ways we can help you...
01.
Creditors Voluntary Liquidation (CVL)
If as a director you are experiencing cash flow issues with your limited company, and cannot see a way out, it is likely that your company is insolvent and you could need to close this business via a liquidation.
A CVL is a way a director can voluntarily close down a limited company, removing the stressed caused by the debts and preventing any potential legal action.
Smith & Barnes and their friendly Insolvency Practitioners can help you navigate through this process, we have a very “hands-on” approach to give you advice you can digest and aim to take the stress away from you.
There are many more advantages to entering a CVL:
Directors can continue to hold the position of director with other companies.
Staff can claim unpaid wages, holiday pay and redundancy.
Opportunity to continue forward with new business ventures.
Prevent any legal action taken against the company.
Please contact us to book a free no-obligation call
02.
Members Voluntary Liquidation (MVL)
For a director of a limited company, there are plenty of reasons why you would choose to closed down your limited company.
An MVL is where a company is profitable and solvent, meaning it can repay all of its liabilities with surplus assets and cash to spare.
This is also a cost-efficient way to close down your business once you have ceased trading, transferring assets and cash to a company’s shareholders in a tax-efficient way. Smith & Barnes offer a fast & low-cost service to ensure a smooth process in closing down your business.
Please contact us to book a free no-obligation call
03.
Compulsory Liquidation
A Compulsory Liquidation is not a voluntary option and is usually initiated by a creditor through a winding up petition.
A Compulsory Liquidation is ordered by the Court (winding up order) and a government representative, known as an Official Receiver (OR), is appointed liquidator and immediately takes control of all aspects of your company.
Compulsory liquidation is usually the last resort of a creditor to get paid, either by forcing the directors to act or gaining access to the company’s assets. This can be taken by a creditor (including HMRC) who has issued a statutory demand for debts owed, that has not been satisfied in 21 days.
If your Company is receiving significant pressure from creditors, particularly statutory demands, or threats of Winding Up, then you must act quickly. Should a Petition be served, then the options available to your company are significantly reduced. Of all formal insolvency procedures, compulsory liquidation is the most invasive of procedures, but there are ways to stop this process.
If you are worried about a creditor issuing up a winding up petition, please contact our friendly team so we can help you whilst you have time.
Please contact us to book a free no-obligation call: