Insolvency is not the end of a business. But it does mean the running of the business is taken away from the owners / directors and given to an Insolvency Practitioner.
There are different regimes a company can adopt when it becomes insolvent. The most often used are:
1) Administration, where the main intention is to save the business and
2) Liquidation, where the business is simply wound up.
In all cases however, the Insolvency Practitioner’s main concern is to protect the interests of the company’s creditors. If you are a creditor of an insolvent company, it is important to ensure that the Insolvency Practitioner fulfills its obligations and does all it can to maximise the assets of the company. It may still be possible to recover a significant proportion of the money you are owed, so giving up on an unpaid invoice as a bad debt when you first become aware of the company’s insolvency may be acting prematurely.
It is important to note that if you are a company director you may have to face an action being brought against you, based on your personal liability for losses caused as a result of how the company was run before it went into insolvency. Insolvency Practitioner’s have significant powers to investigate and pursue matters that occurred up to two years prior to insolvency.
Christopher Burgon has experience representing both creditors and members when dealing with insolvency, and looks at each case individually to help guide you to the most favourable solution. If you are in need of an insolvency solicitor. please give me a call, request a call back or book an appointment online below.
Question: Are you a creditor that is owed money or a director of a company that has become insolvent?
If so, please give me a call, request a call back or book an appointment online below.