Insolvency can be a difficult, stressful and emotional time. If you’re going through the insolvency process, it’s important you have legal advice you can rely on. Here at Nash & Co Solicitors in Plymouth, our team of expert insolvency lawyers are on hand to help businesses of all sizes during this challenging time.
“We understand that in some situations prompt action is required rather than in engaging in drawn out proceedings. Insolvency proceedings are not appropriate in every case, but where they are, it will often lead to a successful outcome”
Jamie Carr, Head of Disputes Resolution
What is Insolvency?
Insolvency is a form of financial distress that means a company or individual is unable to pay their debts.
Where a business becomes insolvent, that is it fails to satisfy a debt (of at least £750.00), you may be able to take steps to wind the company up. Equally, if an individual is unable to pay a debt (of at least £5,000.00), you may be able to take steps to petition for their bankruptcy. Insolvency proceedings are not inexpensive for creditors. This is because they need to pay the insolvency practitioners fees upfront. As such, they are unlikely to recover the full debt owed.
In the event a business is wound up, a liquidator will be appointed. The liquidator will act to return the best results for the creditors, which may include selling assets. Therefore, once the liquidator has fulfilled its duties, and there are surplus funds, the liquidator can pay creditors. As a result, there is a significant risk in going down the insolvency route. If there are insufficient funds, the creditor does not stand to recover either their fees or debt.
Insolvency proceedings can be a useful tool for creditors. This is because the prospect of winding up a business up or bankruptcy is often enough to prompt payment of a debt. Usually, the procedure can be acutely stressful – particularly given the potential implications of insolvency on both company officers and individuals. Our team of insolvency lawyers are experienced in advising both creditors and debtors on the insolvency process. This gives us a unique perspective on risks, opportunities and pitfalls.
Insolvency – what are the implications?
The Insolvency Service now investigates many companies which are wound up. This is to determine whether company officers should face disqualification. This may have far-reaching implications for company directors, perhaps through no fault of their own, who face the spectre of disqualification and therefore the requirement that they resign from any other directorships.
At Nash & Co Solicitors, our team of insolvency lawyers are experienced in advising directors on their position. This includes providing advice in relation to insolvency and responding to the Insolvency Service.
Ultimately, the rules surrounding insolvency proceedings can be complicated, and the procedures are expensive and stressful. Our team’s experience means we can advise creditors, debtors, companies, directors, and individuals. Should you wish to have a discrete initial discussion on your position, please contact our team.
Find out more
We offer clear and practical insolvency advice to our clients in a timely manner. We’re on hand to help you decide on the choices, risks and benefits of taking action. Please contact Jamie Carr by phone on 01752 827014 or by email at [email protected].
Alternatively, you can request a call back from our insolvency lawyers by submitting our contact form.