Emergency Debt Advice
What is Insolvency?
In essence a company or individual is insolvent if they are unable to meet their liabilities as and when they fall due, or additionally in the case of limited companies, if the total value of its liabilities exceed the total value of its assets.
The procedures of liquidation, receivership, bankruptcy, etc. are the formal solutions provided by legislation to resolve this situation. The best solution will depend entirely upon the circumstances in each particular case, but it is a proven fact that the earlier a strategy is implemented, the more likely the survival of the business and the achievement of an agreement with creditors.
Formal insolvency procedures may, depending on the particular procedure in question, being instigated, in the case of a limited company, by its directors or shareholders, or by a creditor. In the case of an individual, formal insolvency procedures may be instigated by the debtor himself or by one or more of his creditors. The procedures which are most likely to lead to a rescue, are those which are instigated by the company or its directors, or in the case of an individual, by the debtor himself.
It is therefore recommended that any limited company, partnership or individual faced with possible insolvency take specialist advice before their creditors take action. Even where creditors have commenced action L+A Business Recovery will ensure that the best possible outcome is achieved.
Where Can I Find Out More?
This is a brief synopsis of the insolvency procedures available, it is not intended to be a comprehensive guide to what is in effect an extremely complicated and specialised area of law.
Similar procedures apply to Limited Liability Partnerships
LA Business Recovery is able to advise you or your client at very short notice and in the strictest confidence. Please contact Virgil Levy on 01895 819 460 or click here to email us