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.
We are a Business Insolvency Company that has assisted thousands of businesses in Bedworth Heath and Warwickshire, offering free advice to help you through the insolvency process.
Our team of professional company insolvency specialists offers immediate advice and support and free consultation to assess the best course of action in the early stages
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 a number of great Business Insolvency services in Bedworth Heath and are more than happy to assist you with anything you need more information about.
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.
You do not always need professional advice to spot the first few warning signs of insolvency, such as:
Increased pressure from creditors
Interests changing or rising further than expected
Pay freezes to conserve money
Late HMRC payments
Struggles with being able to borrow or loan money, especially frequent refusals
Insufficient funds to purchase equipment and services that you normally buy on a regular basis
There can be dozens, if not hundreds, of different things to watch 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 tells.
Cost Of Business Insolvency services in Bedworth Heath
The cost for an insolvency practitioner in Bedworth Heath can range between £2500-£6000 +VAT, however, larger companies that have a high asset value will of course come at a higher price because of how complex the process can be and there is more time spent on the case.
The fee will also be dependent on the size of the company. If you would like a more in-depth quote don’t hesitate to get in touch today!
What is business insolvency?
Insolvency happens when a company’s assets are not enough to cover outstanding debts, bills and other payments. There are two different forms of insolvency in June 2022, but both follow the same basic idea: if you sold off all of your company assets and still could not pay debts, then 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 a mere 10 days after the expected due date, this can still mean that you are insolvent.
The more often this happens, the more obvious the 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 their original payment schedule might become impossible since they are behind on each debt payment.
Balance sheet insolvency
Balance sheet insolvency is a wider type of insolvency. When a business’ total assets are not enough to cover its debts, then they are under balance sheet insolvency. Even if your company is able to pay its debts properly, you are still insolvent since your assets are always less than the total debts.
This can seem confusing at first. The financial state of your company is the real 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, make sure you get in touch with us today!
When a company is insolvent (or about to become insolvent), understanding the financial concerns involved can be important.
Generally, poor cash flow and financial management will be the biggest threat. If your company can’t make enough money, then 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 ahead if there are larger debts on the horizon that your company is already committed to paying.
What are my options when facing insolvency?
When you are technically insolvent and facing potential bankruptcy, it can be tempting to continue trading. However, it is often best to cease trading immediately: if you continue trading, you are putting yourself and your company at even greater risk.
There are plenty of options available, such as:
Advice from an expert insolvency practitioner, like us
Entering into a Company Voluntary Arrangement to change the way you settle debts
Going into administration and being placed under an insolvency practitioner (again, like us)
Using administrative receivership through a bank or third party
Entering full liquidation
At Business Insolvency Company, we can assist you with the best specifications, costs and prices. Make sure you contact us today for a number of great Business Insolvency services.
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 that 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, then 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, then you might have to face some consequences for your actions.
When you have been accused of wrongful trading (trading while insolvent), your trade creditors are able to 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 own finances might be on the line.
Where can I get help with business insolvency?
If you are concerned about your company becoming insolvent, expert advice is vital. Not only can we offer help from experienced financial experts to build the perfect insolvency service, but 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 based in Bedworth Heath and Warwickshire, we know exactly how to handle insolvency proceedings, as well as ways to help insolvent companies break out of their debt cycle or satisfy secured creditors that are demanding payments.
Remember that a private insolvency practitioner can be vital when you have to deal 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 own limited company. If you can’t meet these financial obligations, then you are able to declare yourself bankrupt through the Insolvency Service.
Like company-related options, personal bankruptcy clears your debts but also forces you to undergo liquidation, release assets to pay off as much of the debt as possible, and satisfy the creditors that have a claim to your assets. In extreme cases, this can mean entire houses need to be given up.
Do not pull personal bankruptcy without a lot of 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 it is also the last resort. Companies are not liquidated unless all other options have failed or are not suitable for dealing with the financial and debt problems the company faces.
We offer a lot of business insolvency advice our specialists based in Bedworth Heath 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 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 West Midlands.
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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!
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