Sometimes external factors influence the outcome and sometimes the mix of people, location, product or service simply isn’t the right one. For many reasons it may be time to take advice on the future of the business, even if that advice may bring some difficult decisions.Others we have advised have sought to make astute purchasing decisions to acquire assets or businesses from a liquidator or an administrator. Immediate and pertinent advice is at our fingertips when you need it.
Sole traders can be quickly overcome by external factors such as the economic climate, loss of a main customer or a bad debt.
If the business is healthy at the core it is not necessarily time to give up however, and experienced advice might lead to an Individual Voluntary Arrangement or Scheme of Arrangement being put in place which could allow the business to restructure or re-group with the support of the relevant majority of its creditors.
Bankruptcy advice may still be required and we will explain exactly what it will mean for you.
Different procedures can be applied to a business in corporate distress.
It may be that the business just needs time to pay – a Company voluntary Arrangement will adapt to fit most circumstances and with advice from our licensed insolvency practitioner, you stand the best chance of success.
Administration is heard of almost every day in the news. Companies with much at stake may need the interception of an Administrator to quell the fires of distress, whilst restructuring takes place to enable the re-launch of a streamlined offer to the creditors, suppliers and customers.
Creditors Voluntary Liquidation enables the directors and shareholders to take their own destiny in to their own hands, by placing the affairs of the company in to the hands of a licensed insolvency practitioner, usually leading to an orderly winding up of the companies affairs.
Compulsory Winding Up. A disgruntled creditor has the right to take action with a view to forcing the winding up of a company. Provided the debt is due and if no acceptable offer for repayment is made, the Court will make an order for the Winding up of that company and a liquidator will be appointed off the Court rota of practitioners.
Members Voluntary Liquidation. Not of the same nature, a members winding up is a voluntary process which is normally used to enable successful directors and shareholders to extract their hard-earned funds from the company in the most tax effective way.
Fran Devine is a licensed insolvency practitioner and has significant experience of all types of insolvency, having acted as Liquidator, Administrator, Supervisor of Arrangements and as Trustee in bankruptcy for individuals/sole traders.
A long-standing member of the Insolvency Profession, Fran gained fellowship status with the Association of Business Recovery Professionals, R3 and held a position on the Council of the Insolvency Lawyers Association for several years.
For further advice on all aspects of insolvency please visit our sister website at DIP Insolvency.