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Company insolvency

Few situations are as taxing for business owners and directors as facing the prospect of insolvency and we understand the requirement for sensitivity and confidentiality at this time.

What is company insolvency?

According to government statistics, an estimated 8,514 companies entered into insolvency in England and Wales in the first half of 2017.

A company becomes insolvent when it can no longer pay its debts on time. In this situation, a business becomes subject to corporate insolvency law.

If your company has become insolvent, there are two types of outcome provided for by the law:

  1. An attempt to rescue the business by paying off creditors and re-establish a sound financial footing.
  2. Liquidation of the company by selling off any assets and winding it up.

Depending on your particular circumstances, your company may take either one of these routes, or a combination of the two. Whatever the route, insolvency proceedings are designed to bring about the best possible outcome for everyone with a stake in the business.

Why choose First4Lawyers?

Expert legal services for your business needs - whether it's employment law, policies or commercial property, we can help.

Free initial case review

Our fully trained legal advisors are happy to offer initial guidance and advice for free

Panel of expert solicitors

All our solicitors are pre-vetted and experts in providing legal services for business

No pressure

We offer advice with no obligation.  We never cold call or apply pressure to our customers

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What are the different types of company insolvencies?

Insolvency proceedings can take many different forms, and the best option for your business will depend on the specifics of your financial situation.

The specialist insolvency solicitors at First4Lawyers can advise and act on behalf of businesses going through the following types of proceedings:

  • Insolvent restructuring
    The company’s debt or its operations are restructured in order to make debt repayments more manageable.
  • Liquidation
    Where the company’s assets are handed over to a liquidator and, in most cases, sold off in order to pay creditors.
  • Company voluntary arrangements
    Also known as CVAs, these are where the business is rescued through the reduction of debt repayments. More about CVAs
  • Receivership
    Whereby creditors take control of assets and appoint a receiver to sell the asset to settle the debt if required.
  • Administration
    Which involves the freezing of creditors’ activity towards the company while an administrator establishes a plan to settle the company’s debt and, where possible, enable it to continue trading. More about company administration

Specialist insolvency solicitors will examine the details of your financial predicament before advising and working on the best course of action. At First4Lawyers we work hard to ensure our clients fully understand the implications of all the options available to them before taking action.

My company is facing insolvency – what should I do next?

If your company is unable to pay its debts on time, you can seek legal advice to help you through every step of the insolvency process.

Our experienced insolvency practitioners will complete an initial investigation into your circumstances, before assessing the chances of a successful rescue of your business.

They may then tailor their approach in such a way that risks are minimised and the company’s best interests are put first, unless there is no way to save the business.

The law requires that creditors do not suffer as a result of shareholders being given priority by a company during insolvency proceedings, so our solicitors will ensure the correct focus is given.

To get started, contact us for a no-obligation chat.

If you are a creditor seeking to recover a debt from a company you believe may be insolvent, you can also contact us to discuss the best steps to take to ensure you are paid.

Need a hand? First4Lawyers will...

  • Review your legal requirements for free
  • Recommend the most appropriate action based on your personal needs
  • Assign you a pre-vetted solicitor from our expert panel

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