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Business Recovery Options: Can My Company Be Rescued?  In today’s fast-paced and ever-changing business landscape, it’s essential to recognise the signs of distress and act promptly to secure your company’s future. There are many ways your company can be rescued such as Company Voluntary Arrangement,Debt Restructuring and Refinancing, Asset Refinancing, and Working with an Insolvency…

Bank Bounce Back Loan Help Scheme The Bank Bounce Back Loan Help Scheme has been a vital lifeline for many businesses during turbulent times. As a business owner, it’s crucial to understand the scheme and manage it effectively, ensuring your company’s financial stability while fulfilling your obligations. Are you making the most out of the…

What is an Unenforceable Personal Guarantee An unenforceable personal guarantee is a situation where a personal guarantee, initially meant to hold an individual accountable for repaying their debts, is deemed unenforceable by law. We will look into personal guarantees, focusing on “what is what is an unenforceable personal guarantee anyway” and how to identify, challenge,…

Understanding Eligibility for Director Redundancy Pay As a company director, navigating the complex landscape of director redundancy pay can be challenging. For a director to be eligible for redundancy pay, the director must have maintained uninterrupted employment with the company for a minimum of two years. Understanding your rights and entitlements, including understanding eligibility for…

How Much Does It Cost to Liquidate a Limited Company? A small limited company with a small asset value costs around £2,500 to £6,000. The costs to liquidate a limited company can fluctuate depending on various factors. The costs can be daunting, especially when navigating the world of insolvency practitioners, legal fees, and unexpected expenses.…

What is the Order of Creditors in Liquidation? Secured creditors are those who hold a security interest in some or all of a company’s assets, typically giving them priority in repayment. Creditors are ranked in the following order: Liquidator fees and expenses, Secured creditors with a fixed charge, Preferential creditors, Secured creditors with a floating…

What Is A Declaration Of Solvency In An MVL Procedure? The declaration of solvency in a Members’ Voluntary Liquidation (MVL) procedure is a crucial document with significant legal implications. The declaration confirms that the company can settle its outstanding liabilities, including interest, within 12 months of liquidation. You must sign the declaration before initiating the…

Directors’ Personal Guarantees: Liability in Liquidation Directors’ personal guarantees represent a critical aspect of corporate governance and financial liability.  In the context of liquidation, these guarantees assume even greater significance, as they delineate the extent to which directors can be held personally accountable for debts incurred by their companies.  This area of law intersects complex…

What is Balance Sheet Insolvency – a Complete Guide Balance sheet insolvency is a financial issue that can have significant consequences for companies and their stakeholders. It is a complex subject, and understanding its implications is crucial for business owners, directors, and investors alike. Balance sheet insolvency is a more severe form of financial distress…

Recourse and Non-Recourse Invoice Factoring As a business owner, you may have encountered the terms “recourse factoring” and “non-recourse factoring” while seeking financing solutions, such as recourse and non-recourse invoice factoring. Invoice factoring is a form of debt finance that provides businesses with access to working capital. Recourse and non-recourse factoring offer different levels of…