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Insolvency Practitioners in Tiverton

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An insolvent company is not just in financial distress – it can be on the verge of complete collapse, depending on how serious the situation is.

Dealing with insolvency is not as easy as you might expect, but as licensed insolvency practitioners, we are here to help your company avoid liquidation and debt.

If you are looking to find an insolvency practitioner in Tiverton who is licensed in the UK, we can help

We are a Business Insolvency Company that has assisted thousands of businesses throughout Tiverton Devon, offering free advice to help you through the insolvency process. As the leading licensed insolvency practitioners, we can help you through the formal insolvency procedures. 

Whether you are struggling to pay a bounce back loan or another form of debt, our team can help.

Our professional company insolvency specialists offer immediate advice and support in Tiverton and free consultation to assess the best course of action in the early stages.

Speak To A Professional

You should seek the assistance of a certified insolvency practitioner (IP) if your company has financial issues or is going through a formal insolvency process, such as liquidation.

All of our insolvency practitioners have had training as accountants or insolvency experts. We offer advice and undertake appointments in all formal insolvency procedures.

Not every company with financial difficulties is insolvent; short-term cash flow challenges may not always imply insolvency.

If you are facing financial problems, you should make it a point to determine whether or not the company is insolvent so that you can plan your next steps.

We offer great Business Insolvency services throughout Tiverton and are happy to assist you with anything you need more information about.

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Table of Contents

Why Choose Us?

As the UK’s leading company insolvency expert, we offer a free no-obligation consultation to help your company’s financial position.

Here is a breakdown of what to know about becoming an insolvent company, how to avoid it, and how we can help you push past financial difficulties that might leave you unable to pay bills.

If you are on the board of company directors struggling financially, we can offer free insolvency advice and the best solution to rescue companies.

We prioritise knowledge, openness, trust, optimism, experience, approachability, and availability.

Every business is unique. Therefore, our first step is always learning about each company and how it operates.

Insolvency Advice in Tiverton

We are the most trusted team of insolvency practitioners in Tiverton.

The Business Insolvency Company provide information to help business owners through such a stressful time.

Get in touch today to speak to a licensed insolvency practitioner with invaluable experience.

Speak To A Licensed Professional

Warning Signs of Insolvent Companies

You do not always need professional advice to spot the first few warning signs of insolvency, such as:

There can be dozens, if not hundreds, of different things to look out for. Insolvency can’t sneak up on your company’s management, so if you are in a director position, keep an eye out for obvious signs.

Business Insolvency Tiverton

Cost Of Business Insolvency services

The cost for an insolvency practitioner can range between £2500-£6000 +VAT; however, larger companies with a high asset value will come at a higher price because of how complex the process can be, and there is more time spent on the case.

The insolvency practitioner cost will also depend on the company’s size.

If you are looking for cheap liquidation in Tiverton Devon, we can help with this.

What is business insolvency?

Insolvency happens when a company’s assets are insufficient to cover outstanding debts, bills and other payments.

There are two different forms of insolvency in December 2023, but both follow the same basic idea: if you sell off all of your company assets and still cannot pay debts, your company is insolvent.

There is a range of specific details and factors that can relate to insolvency, liquidation and how your company’s creditors will respond.

Whether or not you are personally liable can also change depending on what caused the insolvency and debts in the first place.

Cash flow insolvency

Cash-flow insolvency is the most obvious form of company insolvency – your financial situation will not let your company pay their business debts when they are due.

Even if your company’s business debts get paid 10 days after the expected due date, this can still mean that you are insolvent.

The more often this happens, the more obvious corporate insolvency is. It is less about whether the debt does get paid and more about when you can pay it.

For an insolvent business, recovery to its original payment schedule might become impossible since they are behind on each debt payment.

Balance sheet insolvency

Balance sheet insolvency is a broader type of insolvency. When a business’s total assets are insufficient to cover its debts, they are under balance sheet insolvency.

Even if your company can pay its debts properly, you are still insolvent since your assets are always less than the total debts.

This can seem confusing at first. Your company’s financial state is the key: you can be insolvent and still pay all outstanding debts, but you would also be under immediate threat if any of those debts ever increased or had to be paid earlier than your company can manage.

If you would like to receive even more information on Business Insolvency Company services in Tiverton, make sure you get in touch with us today!

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Factors contributing to Insolvency

Understanding financial concerns can be important when a company is insolvent (or about to become insolvent).

Generally, poor cash flow and financial management will be the biggest threat. If your company can’t make enough money, you can’t use that money to settle debts.

If you can’t settle those debts, then a cash flow test or balance sheet test will show the situation getting worse and worse as the debts compound on each other. When your company is insolvent, you are always at risk of that insolvency getting worse and worse.

Almost anything can contribute to insolvency if the situation is dire enough. Contingent liabilities and future debts can also play a factor, forcing you to plan if there are larger debts on the horizon that your company is already committed to paying.

business insolvency advice Tiverton

What are my options when facing insolvency?

It can be tempting to continue trading when you are technically insolvent and facing potential bankruptcy.

However, it is often best to cease trading immediately: if you continue trading, you put yourself and your company at even greater risk.

There are plenty of options available, such as:

At Business Insolvency Company, we can assist you with the best specifications, costs and prices.

Contact us today for several specialist business insolvency services in Tiverton.

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Can Creditors take legal action against my insolvent Company?

Aside from unsecured creditors, most creditors will have a solid claim towards your company.

When your company is experiencing temporary financial difficulties, you may end up being trapped in a situation where your company is insolvent and has to give up other assets to cover the debts.

The court judgement, a statutory demand or a company wind-up can all be ways a creditor may take legal action against you.

A wind-up is generally the worst option: freezing accounts, selling off assets, and then firing employees unless the creditor specifically buys the company to keep it operating.

You can sometimes apply to the court to make a winding-up order halt or delay, but legally binding agreements still have to be met.

If you contractually promised a company to return something if you failed to pay for it, your company may have to meet that arrangement even while insolvent.

Can this impact me personally?

As a director or manager in a company, you may think that it is not your responsibility to cover any insolvency issues yourself.

However, if the insolvency could have been your fault, you might have to face some consequences for your actions.

When you have been accused of wrongful trading (trading while insolvent), your trade creditors can take action against you too.

You could be fined, removed from your position, expected to pay back the missing funds or even jailed, depending on how severe the station is.

If you are worried about preferential creditors coming to get money from you personally, then you should speak to some of our experts today. Every situation is different, and your finances might be on the line.

Where can I get help with business insolvency?

Expert advice is vital if you are concerned about your company becoming insolvent.

To build the perfect insolvency service, you should seek business debt help from experienced financial experts. Still, we can also advise you on how to approach secure creditors voluntary liquidation and other options.

Call us now to get the help your company deserves.

As expert insolvency practitioners, we know exactly how to handle insolvency proceedings and how to help insolvent companies break out of their debt cycle or satisfy secured creditors demanding payments.

Remember that a private insolvency practitioner can be vital when dealing with voluntary or compulsory liquidation quickly and efficiently. If your company can’t remain a going concern and turn a profit, then a smooth liquidation can give you the time you need to repay creditors.

Are Insolvency and personal bankruptcy the same thing?

In these situations, personal debts can be gained from your limited company. If you can’t meet these financial obligations, you can declare bankruptcy through the Insolvency Service.

Like company-related options, personal bankruptcy clears your debts. Still, it forces you to undergo liquidation, release assets to pay off as much of the debt as possible, and satisfy the creditors claiming your assets.

In extreme cases, this can mean entire houses need to be given up.

Do not pull personal bankruptcy without planning because it can’t be undone without waiting for the bankruptcy to end (or ending it early). Our excellent insolvency practitioner can advise you about other ways to work within the Insolvency Act and resolve these issues.

Can a company recover from insolvency?

A company can be rescued from insolvency but not liquidation.

While a company could effectively be re-created in the future by the same owners and staff, the original company no longer exists once liquidated since all assets (sometimes including branding elements) are sold off.

Compulsory liquidation is more or less the ‘death’ of a company but is also the last resort.

Companies are not liquidated unless all other options have failed or are not suitable for dealing with the company’s financial and debt problems.

FAQs

What is a Licensed Insolvency Practitioner?

A licensed Insolvency Practitioner, also known as an (IP), is authorised and licensed to react to an insolvent individual, partnership or company.

It is quite common for insolvency practitioners to work as accountants or insolvency specialists working in different types of accounting firms.

What are the requirements of a Licensed Insolvency Practitioner?

To be a recognised Licensed Insolvency Practitioner, you must hold a license and how the following:

The Joint Insolvency Examination Board conducts a practical exam that tests the knowledge and skills you will need to use in your everyday work.

The Joint Insolvency Examination Board allows you to look at previous test papers to see what has been asked on recent papers.

What is the Insolvency Practitioners Association?

Insolvency Practitioners Association is a membership body designed for authorising insolvency practitioners under the Insolvency Act 1986.

They are the only one of the recognised bodies solely involved in insolvency.

What are the types of Insolvency Practice In Tiverton?

Listed below are different types of Insolvency Practices you can expect to find:

We can also help with individual voluntary arrangements (IVA’s), which help you pay creditors. An IVA allows someone who owes money to enter an arrangement to make manageable payments.

As a licensed IP, we can help with all recovery options and provide advice accordingly.

What are the recognised professional bodies in Insolvency?

Listed below are the four main recognised professional bodies in the Insolvency industry:

  1. Institute of Chartered Accountants in England and Wales – ICAEW
  2. Institute of Chartered Accountants in Ireland – CARB (ICAI)
  3. Institute of Chartered Accountants in Scotland – ICAS
  4. Insolvency Practitioners Association – IPA

What is a chartered accountant?

Chartered accountants are accountants with the accreditation of a chartered status.

A chartered account has studied accounting to a high level and gained experience in the industry.

What Happens to Staff During Administration?

When a company enters administration in the UK, all contracts with staff become void.

Employees will be owed any wages earned up until the day of administration and may be able to claim further redundancy payments.

We discuss more what happens to staff when a company goes into administration here.

What are some of the options for solvent companies?

Listed below are some of the options you should consider for solvent companies:

A solvent liquidation is a process used to conclude the affairs of a company that has reached the end of its natural life.

But the solvent liquidation means the company is closing down the company (without debts) and has positive credit.

How much do insolvency practitioner services cost?

It is quite common to find that there is no fixed price and the fee will usually depend on the amount of time and effort spent on the job. Insolvency practitioners usually get paid from a pot of money that is distributed to creditors during insolvency, which means the companies creditors ultimately pay the insolvency practitioners fee.

What is a provisional liquidator?

Provisional liquidation is a process which exists as part of the corporate insolvency laws of a number of common law jurisdictions, the main job of a provisional liquidator is to ensure the preservation of the company’s assets or conducting investigations.

Can I Close a Company With Debt To HMRC?

You can close a company with debt to HMRC in the UK.

However, the debt owed to HMRC will still need to be settled, regardless of the company being closed. This may involve selling assets, or a director’s personal guarantee, to pay the debt.

Following proper legal procedures and requirements when closing a company is important, including informing relevant authorities and paying outstanding debts. It’s recommended to seek professional advice to ensure the process is handled correctly.

Searches Associated With Business Insolvency

Keep an eye out for the following keywords associated with Business Insolvency in the UK:

Keep an eye out for the following words and phrases associated with insolvency and company debts:

Summary

We offer a lot of business insolvency advice our specialists based in Tiverton will make sure you get the best services and we are more than happy in assisting you with anything you need more information on.

For more information about our services in Tiverton don’t hesitate to get in touch with us today using the contact form below and we will get back to you as soon as possible with a no-obligation quote!

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Make sure you contact us today for a number of great Business Insolvency services in South West.

Here are some towns we cover near Tiverton.

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What Others Say About Our Services

We absolutely love the service provided. Their approach is really friendly but professional. We went out to five different companies and found Business Insolvency Company to be value for money and their service was by far the best. Thank you for your really awesome work, we will definitely be returning!

Reuben Adams
Devon

We have used Business Insolvency Company for many years as they are certainly the best in the UK. The attention to detail and professional setup is what makes this company our go-to company for all our work. I highly recommend the team for the immense work - we highly recommend them!

Louis Robertson
Devon

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