Yes. You can invite creditors to wind you up or have the company struck off insolvently in certain circumstances.

Not always. If the company has no assets and has ceased trading you can wind your company up. However, you will not be able to have it struck off at Companies House until it has been into liquidation or another insolvency procedure first.

Not being able to pay your employees is a horrible situation for a business owner. If you’re experiencing a cash flow shortage, you must determine whether it is short-term or if the problem is likely to have long-term repercussions. If you feel it is more short-term, there are a few options. As difficult as it might be you could ask staff to wait for some or all payment or if you feel the company is in real difficulty, you can apply for a loan which should be a short-term solution. If you feel it is long-term, you need to assess your business model to ensure the company can find the best solution moving forward.

It is never too early to contact us. Early planning helps to avoid pitfalls and may expand the range of options available to your company due to having more time. Clients often say that they wish they would have spoken to us sooner.

Yes. We can often help to adjourn or dismiss the petition so that we can discuss your options and find a solution for you.

Yes. You should speak to an insolvency practitioner about whether strike-off or a solvent liquidation is otherwise known as a member’s voluntary liquidation (‘MVL’) is appropriate.

Yes. So long as it has a realistic plan and is likely to be achieved so that it can avoid entering insolvent liquidation. In addition, it can be as part of a formal insolvency procedure or restructure agreed by creditors. However, in these circumstances, directors should not continue to trade until expert advice has been received from an insolvency practitioner. A director should be aware that they may become personally liable for any debts incurred after a time when they knew or ought to have known that the company could not avoid insolvent liquidation.

Yes. The most effective way to achieve this is by directors proposing a company voluntary arrangement (‘CVA’), whereby they will utilise the income and assets of the company to settle its liabilities either in part or in full.

If you continued to trade after a time at which a reasonable director would have known, or ought to have known that the company was unable to avoid insolvent liquidation. You may also become liable if the company defaults on any debts which you personally guaranteed.

If your business has cash flow difficulties then one option is to consolidate your debt, making creditor payments easier and giving your business the best chance to turn your situation around. There are many options available depending on your business situation, they are – company voluntary arrangement (‘CVA’), individual voluntary arrangement (‘IVA’), partnership voluntary arrangement (‘PVA’), and refinancing. If you need more clarity on the options above and struggling to manage your business debt, then get in touch with BRI Business Recovery and Insolvency’s experienced advisors and we will talk you through the most suitable option.

Company voluntary arrangements (‘CVAs’) are a way to get breathing space to repay your creditors either in part or in full over a number of years It allows the directors to continue to run the business. Click here for further information.

Administration is a process to restructure or sell the business with the aim of either turning it into a profitable company or preserving value and employment and maximising returns to creditors. Click here for further information.

A creditors’ voluntary liquidation (‘CVL’) is a formal insolvency procedure which involves the directors and shareholders of an insolvent company voluntarily putting the company into liquidation. Although the process is entered into on a voluntary basis, it often follows the culmination of many months of financial distress when the possibility of a successful turnaround has been extinguished. Click here for further information.

Compulsory liquidation is a formal insolvency procedure that results in a company being forcibly shut down. The compulsory liquidation process is enforced by a creditor of the company filing a winding-up petition in court via a solicitor. The process can also be started by a director(s) more often when a board resolution for a creditors’ voluntary’ liquidation cannot be reached. Click here for further information.

Administration and liquidation are both insolvency procedures, however, they are both different and will only apply in certain circumstances. Administration is often a way to restructure an insolvent company where extreme cases of financial difficulty prevent the company from being profitable. In comparison, liquidation will often see an insolvent company closed, drawing a line under its debts. If you need more guidance and help on what option is more suitable for your company, contact our experienced team of practitioners at BRI Business Recovery and Insolvency.

A personal guarantee is the granting of confirmation, often between a company director and a company supplier, that the director will personally settle the debt if the company fails to do so. The guarantee put in place protects third parties who are looking to supply goods or services. For example a personal guarantee may be required for trade suppliers, business or property loans, invoice finance, commercial rent, lease agreements and bank overdrafts.

If your company is struggling to pay its debts, there are a number of payment plans available to help you. A repayment plan is needed when levels of debt become so high that they can’t pay them back due to lack of funds. There are other reasons why a repayment plan may be a viable option, for example, you may want to remain in control of the company while repaying debts, you need to protect the company from creditor action or you need a cost-effective solution to repay your debts.

A moratorium provides breathing space to refinance or restructure the business and trade on. Click here for further information.

A restructuring plan is a Court-approved agreement between a company and its creditors to restructure its debt often allowing it to pay back some, or all of it, over a period of time. Click here for further information.

A time to pay (‘TTP’) is a private agreement with HMRC to repay liabilities due to them over a period of months or years. A TTP is often an appropriate solution to address the arrears where other creditors are relatively up to date and you are unable to pay HMRC when your debt falls due.