FAQ

What is business insolvency?

Business insolvency occurs when a company is unable to pay its debts as they become due. This can result in the company being forced to cease trading or being placed into administration or liquidation.

What are the warning signs of business insolvency?

Some warning signs of business insolvency include difficulty paying bills on time, declining sales, increasing debt, and cash flow problems.

What are the options for a business facing insolvency?

There are several options available to a business facing insolvency, including restructuring, refinancing, administration, or liquidation.

What is the role of an insolvency practitioner?

An insolvency practitioner is a licensed professional who specializes in helping businesses facing financial difficulties. Their role can vary depending on the situation, but generally involves managing the insolvency process and ensuring that creditors are treated fairly.

Can a business continue to trade during insolvency?

In some cases, a business may be able to continue trading during insolvency proceedings. This is often the case during administration, which is designed to give the business time to restructure and pay off its debts. However, if the company is placed into liquidation, it will generally need to cease trading.