Corporate insolvency
Put simply, when a company has net liabilities or cannot pay its debts when they fall due, it is insolvent. This impacts on how the business should be run, so the directors should take advice as soon as possible from a licensed Insolvency Practitioner. If early action is taken, it may be possible to trade out of the situation or at least avoid penalties for getting it wrong. For most directors this will be the first time they find themselves in this uncomfortable situation but we operate in this area the whole time.
Directors of an insolvent company have a duty to act in the best interests of creditors and need to be careful to avoid wrongful trading (and personal liability!) or other misconduct which could lead to disqualification. McTear Williams & Wood are happy to meet to assess the situation with you. All initial meetings are free and in confidence. There are a number of possible options that we will discuss with you, including:
- Company rescue
- Formal insolvency procedures
- Administration
- Administrative receivership
- Company voluntary arrangement (CVA)
- Creditors voluntary liquidation (CVL)
- Compulsory liquidation
McTear Williams & Wood cover East Anglia including Essex, Norfolk and Suffolk.
Click here for more information on formal insolvency options or contact us free on 0800 085 5070.