Insolvency and bankruptcy - it’s confusing to know which applies to your business. Whilst the two are similar, they are also very different and don’t mean the same thing. Insolvency is when a company or an individual can’t pay their debts on time. Bankruptcy is the legal process that follows when an individual has been [...]
Not paying back your debts is not an advisable course of action. However, if you decide to go down this route, it’s best to know where you stand and what your legal rights are. Most of the time, your debts will be chased down by a debt collection agency but sometimes, it is the creditor [...]
If you’re experiencing debt problems on an individual basis, and you have your own business, you may have been threatened by creditors that they can target your business for personal debts. In some circumstances, creditors can make a claim against your business to recover their debt. However, if you have a limited company, it is [...]
Being in a position where you’re unable to pay your company’s creditors is extremely stressful. In an attempt to avoid increasing the level of debt, many companies try to negotiate directly with their creditors and agree to an informal arrangement. If the debt is quite small and owed to one creditor, and the creditor is [...]
It’s a worrying time for creditors when a limited company goes bankrupt or enters an insolvency process. The biggest concern, particularly for the smaller unsecured creditors, is whether they will ever receive the outstanding debt owed to them. There is a predetermined order in which creditors are paid during the bankruptcy or insolvency process, according [...]
Last year there were 3,883 company insolvencies in Q1 alone and that figure doesn’t include those that went into administration or entered voluntary arrangements. In the UK, when a company goes bankrupt, which is called liquidation, it stops trading, is wound up and then taken off the register at Companies House. Insolvent limited companies go [...]
Declaring personal bankruptcy or insolvency is usually the last resort for many struggling with debt. Before you go down this route, it is a good idea to understand the costs involved. Although it is an option for resolving debt issues, you will need to have sufficient funds to apply for bankruptcy and the hiring of [...]
People often find that after a period of time, usually around six months, a company to whom they owe money will pass the debt over to a debt collection agency. Paying off debts is not always an easy task when much of the time you are only paying the interest. Debts that haven’t been paid [...]
Any business can get into debt trouble, at any stage. This is when business debt plans come into action. Just because a business debt plan is being implemented, it doesn’t always mean that the company is about to close. It is possible to utilise debt for a long-term investment or as working capital. If you [...]
There are a variety of reasons why a company would enter voluntary liquidation; it could be a director or directors wanting to retire or it closing one company to start another. What’s more, it could be transferring assets from a company to its shareholders, due to a company restructure, or it could be just that [...]
