Are you a company director dealing with insolvency? Is your company heading for administration or liquidation? Are you worried about bankruptcy? We could help save your business and protect your personal assets, now and in the future.
If your business is facing financial difficulty, it is essential that you seek prompt specialist advice, right away.
Bird & Co’s expert company insolvency solicitors in Lincoln have wide experience and specialist expertise in providing practical and effective commercial advice that may help save your business and protect you from the financial impact of a potential insolvency claim.
What does it mean to become insolvent or bankrupt?
Insolvency occurs when a person or company is no longer able to pay their debts when they are due. In this situation, an individual could face bankruptcy whereas a company could face insolvency, since different rules apply to each.
Today, with businesses operating in a tough economy, poor sales combined with rising costs can increase the pressure, making survival difficult and insolvency or bankruptcy more likely to occur.
If you feel that your business may be going insolvent, where liabilities and debts start outweighing assets, it is important to seek professional advice as soon as possible. Our specialist insolvency solicitors at Bird & Co can advise and assist you in making the critical arrangements with your creditors which may allow you to have more time to pay off your debts.
What is the Insolvency Process?
There are two initial tests that can be applied to determine whether or not your company is insolvent which include:
- The cash flow test – when a company cannot pay its debts when they are due.
- The balance sheet tests - when a company’s current and future debts outweigh its assets.
UK insolvency laws provide the following steps in the insolvency process for dealing with an insolvent company which includes:
- Administration – which aims to keep the business running. At this stage the court will appoint a qualified insolvency practitioner to run the company. During this time, the company can look at a potential restructure and put together a debt management plan.
- Company Voluntary Arrangement (CVA) – which allows the business to continue trading with a payment plan agreed with its creditors.
- Liquidation – when the court decides to shut a business down, for good, in order to prevent any further debts accruing. At this stage the company will be stripped of its assets which will be sold off to pay creditors.
How can Bird & Co’s Insolvency Solicitors in Lincoln help?
We know that losing your business and facing bankruptcy can have a devastating impact on you financially, professionally and personally. The effects on your personal, professional and family life can be hard to recover from, especially where there are large debts and the potential loss of personal assets or even your family home.
We will take the time to fully understand your business position and the precise nature of the financial difficulty your business is facing. We can help assess your current situation and business objectives in order to advise you on your best options and likely outcomes, going forward. We can also advise you on your duties and responsibilities as a director, helping you to mitigate risk and avoid potential claims being brought against you by creditors.
We have extensive experience in working alongside lenders, accountants, insolvency practitioners and company directors to deliver practical solutions that will ensure the best interests of you and your business are protected and promoted.
We are able to act with speed and efficiency when liaising with banks, accountants, insolvency practitioners and other professionals and can work with you on all aspects of insolvency, business recovery and rescue. By adopting a comprehensive and strategic approach, we will be able to take into consideration all of the options that may be available to you and the potential issues you might face, including:
- Debt management
- Asset realisation
- Company sales
- Company restructure
- Company rescue
- Company Voluntary Arrangements (CVAs)
- Company liquidation advice
- Insolvency claims
- Individual Voluntary Arrangements (IVAs)
If your business has run into trouble and you think it could be at risk of becoming insolvent, contact us today for a no obligation discussion to see how we may be able to help with insolvency, recovery or rescue advice.
Contact Our Insolvency Solicitors in Lincoln
To make an appointment or to find out more about how our insolvency solicitors in Lincoln can help you with an insolvency matter, telephone our dedicated team on 01522 80 30 50 or email: email@example.com Alternatively, you can complete our quick online enquiry.