Whatever the size or nature of your business debts, it is vital to seek advice so you know how to resolve them. Business debts help can make all the difference if you seek it early, because it could literally save your business.

Worried? How to deal with business debts? Watch short video below or scroll to read the post…

By the end of this short video you will understand: Business Debts with Inland Revenue, Custom & Excise VAT Consequences to Company Directors Penalties, Interest and Other Charges Solution

Where can you get business debts advice / help?

The Business Debtline exists to provide free advice to all types of businesses. Their website gives advice to businesses in Scotland as well as England and Wales, as the laws can differ slightly in these areas.

You can also consult the Business Link site created by the government. But often the best sources of advice for business debts consolidation are experts who have their own businesses doing just this on a daily basis. Be sure you consider all the options and make a list of potential solutions you could use.

Seeking specialist advice for business debts solutions and VAT debts

The first thing you should consider is the type of debt you have. For example VAT debts and tax arrears are vital to get sorted out as quickly as you can. Professionals in this field can advise you on the best way to handle the situation in order to come to the best conclusion without risking the future of your business.

Smaller debts to other creditors may not be as important as these debts, but you should still pay close attention to the situation. If you rely on a particular creditor to provide you with essential raw materials for example, they could refuse to supply any more until you clear your debts. So you can see that finding business debts solutions is important in every situation.

You can probably tell that time is always of the essence. No form of debt will go away simply because you choose not to think about it or confront the problem. In fact the opposite will happen – the debt is likely to get bigger. Since this threatens the very existence of your company you can see that it makes sense to ensure you take the best form of action as quickly as you can. 

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Business Debt Helpline 0800 24 0800

Most people have heard of businesses going into administration. This is when an appointed administrator holds the decision on whether the business is able to carry on or whether the assets should be liquidated. In some instances the company is able to continue as a going concern.

However there is another form of administration which is known as a pre-pack administration. In this situation an agreement is made to save the existing business. If you think your business might benefit from this move, you should find out as much as you can about administration pre pack before you do anything else.

Is it true that a business can continue in a administration Pre-Pack process?

Yes this can happen. It is perfectly legal and it means the business can continue in the hands of a third party. This could be someone who is completely unrelated to the business, or in certain circumstances a new company can be formed by the directors of the existing company. This might sound unusual but it is legal and encouraged in certain instances because it keeps the company afloat.

So a prepack administration could save the jobs of those working for the company?

Yes it can, and this is one of the reasons why this avenue should always be considered if your company is in financial trouble. Of course it is important to ensure you get practical advice in every case; you may not be in a position to create a pre-packaged administration to solve the problem.

Any business in this kind of situation is likely to be facing threats from creditors who have yet to be paid as agreed. A administration pre-pack can ward off these threats, whereas the alternative is to wind up the company and let it go under. By triggering the pre-pack option you can not only save your business and keep it afloat, you can also protect it, keep it trading and keep people in jobs.

It is vital though to remember that you have a duty to try and pay back your creditors. A prepack agreement of this nature should not be seen as an easy way out. In fact there are precise stipulations that surround this situation, which is why professional advice is always advisable if your company is in financial trouble and you are considering your options. Finding the right solution is always the best course of action. 

Administration Pre-Pack Helpline 0800 24 0800

 
To find out more Watch the short video below about Administration Pre Pack

By the end of this short video you will understand: What is a Administration Pre Pack? Why would a 'Pre Pack' be good for your business? New Rules SIP Number 16 What are the Options?

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Administration Pre-Pack Helpline 0800 24 0800

The phrase company liquidation is not one that any company wants to think about. But unfortunately there are times when business liquidation is necessary, largely because the company is no longer profitable and owes money to various creditors. If you find yourself in this situation it is important to learn as much as you can about the process, so you do not act more quickly than is necessary.

Are there different types of company liquidation process?

Yes there are, and this is one point that few people are aware of until they find themselves in a situation where liquidation is a distinct possibility. A company voluntary liquidation can take one of two forms. Firstly it can be a members’ voluntary liquidation, which means those in charge of the company decide to liquidate all its assets to pay the creditors. The second form of voluntary liquidation is called the creditors’ liquidation. This is still put into action by the shareholders but in this case the assets are not enough to cover the liabilities the company has.

The third type of company liquidation process is when the decision is made not by the company shareholders but by the courts. In this situation they create what is known as a winding up order. Once this happens the company directors have no choice but to go along with the court order.

Why is it important to seek limited company liquidation advice before acting?

There are plenty of professionals who provide a company liquidation service. It is vitally important not to act until you have sought the appropriate advice. This is because they will know about business liquidations in great detail. Since you would not need to know anything about them unless and until you find yourself in this situation, it makes sense to consult the professionals for advice.

For example in some cases you might think that voluntary company liquidation is the only way to proceed because you cannot see a way out. However a professional company liquidation Birmingham or London based expert might advise you to try and make a formal or informal arrangement with your creditors. In this case you might be able to agree a plan of action whereupon you keep your business and pay back your creditors over time. The other alternative is familiar to many and is known as going into administration.

In any event you can see that even when company liquidation is on the cards, all is not necessarily lost.

If you are not sure what is liquidation of a company then watch the short video below.

What is Liquidation of A Company?

So what is liquidation of a company?

As soon as company placed in to liquidation an insolvency practitioner steps in the company and finalise the affairs of the company. An insolvency practitioner sells any assets of the company if any. This doesn’t ends here an insolvency practitioner pay any liabilities with what payments are left if any amongst the company creditors. Once this exercise has been completed the company is then dissolved and removed from the Companies House Register.

For more details watch the video below to find out What is a Company Liquidation:

What is Business Bankruptcy?

Small business bankruptcy and how to deal with it?

If as small a business you are facing a bankruptcy my first advice is don’t panic. Don’t act in haste either, because anything you do now could stay with you for a long time. Bear in mind if your business is in trouble there could be more than one way out of your situation.

One way is company liquidation, this means you will look for liquidating all your business assets so you can pay your creditors and wind up the business. Usually this process initiated by the courts. Whatever is the situation, as soon as you realise that small business bankruptcy could be a possibility, you must seek an expert advice.

Where to get an expert business bankruptcy advice?

There are lots of insolvency practitioners in the market but most of the time they will work for your creditors then you. On the other side Insolvency Auditor will work for you then your creditors. They will give you free advice over the phone as how to liquidate your company and walk away or a fresh start.

Before even contacting an insolvency auditor or a practitioner you can get initial advice from websites that are dedicated to provide all kinds of accurate business information to all kinds and sizes of business. Search the word “business bankruptcy” on Google to see what your options are.

Why you need business bankruptcy help at the very early stage

The most important thing to remember is not to ignore this situation. It’s always best to deal with potential cash flow problems as early as possible. This will allow you to tackle the situation at its early state rather making business bankruptcy imminent.

Calling an insolvency auditor for an initial small business bankruptcy advice will cost you nothing. The business bankruptcy advice will always provide you with the best information and suggestions as to the best route ahead.

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Small Business Bankruptcy Helpline 0800 24 0800

It is important to realise that limited company insolvency does not happen overnight. Normally a series of events and situations will lead to an insolvency becoming a reality. This means that if you are in control of your business and you are watching for any signs that it might be in trouble, you can often take preventative measures to ensure your business does not end up becoming company insolvent.

What does Company Insolvency Mean? To find out watch the video below or scroll to read…

At the end of this short video you will understand: What is a Company Insolvency? What is Insolvent Trading or Wrongful Trading? What are the Legal Implications of a Wrongful Trading? What should you do if you are in this position? What Next?

What should you look out for?

Many situations that occur in the run up to a company insolvent situation are huge red flags to those in charge. The issue is in whether you recognise them and accept them for what they are.

For example you might find you are always juggling money to ensure you have enough to pay your bills. Similarly you may find your overdraft is always being squeezed and you cannot get an extension on it from your bank. If you let bills become overdue on a regular basis, you should take this as another red flag for getting company insolvency advice. It’s common enough to miss one occasionally – perhaps because it gets lost in the shuffle or even lost in the post – but if it is happening all the time you should sit down and take note of the situation you are in.

Is it possible to ward off company insolvency administration?

The good news is that it is, but you must learn to recognise the earliest signs that there may be a problem. Recognising your situation and dealing with it at a very early stage can be enough to get your company back on track again. If you consistently have more money going out than you have coming in, it’s obvious that this is a problem that will only get worse the longer it goes on. A company insolvency service can advise you on the best steps to take.

Taking responsibility for your company could mean taking a long hard look at your financial situation. Tackling it now and making changes to your business in order to ward off business insolvency could save it – and it might even lead you back into healthy profits once again. In any event it is very important to take action as soon as you can.

For Company Insolvency Advice Call on 0800 24 0800 alternatively you can download the quick Insolvency Survival Guide For Businesses written by the author and business mastermind coach Moe Nawaz from his experience as an Insolvency Auditor during 20 years of helping people just like you to map out a better future.

By Moe Nawaz - UK's Most Trusted Insolvency Auditor & Mastermind Coach for Business Growth. 

Everyone who starts a business wants to ensure it is a success. But sometimes even the most successful businesses face situations which are eventually to be their undoing. This could be anything from bad management to a recession right through to competing businesses.

If a business owes money to its creditors and does not take the steps necessary to resolve this situation, it may be faced with a winding up petition. Read on to find out more about what this means.

What should your first move be if you are given a company winding up petition?

Protection Against Winding Up Petition For Company Directors  Tel: 0800 24 0800

“Winding up” in this case refers to the closure of a business, and the processes involved in bringing the company to an end through court proceedings and then sale of company assets. If a creditor wishes to liquidate a particular company because debts are not being paid, they can submit a winding up petition. It is important to realise that companies can in fact submit a winding up petition for themselves, but it is commonly submitted by creditors who have grown impatient with false promises that the company has made regarding payments. Winding up is a very serious matter and can prove detrimental to both creditors and businesses. 

The Inland Revenue may be one of the creditors you owe money to, and they are very effective at recovering their debts. They will usually have tried several methods to get their money back, and but if you have not paid or you can’t agree on Payment Terms, your company receive a Winding Up Petition.

Prevent Further Action

You can cease proceedings by paying the Inland Revenue all of the money you owe to them, or by implementing a payment plan that both parties can agree to and your company can stick to. It is always advisable to keep in contact with the Inland Revenue all the way through the proceedings. This is a very compromising position for a business to be in, it is hence of paramount importance that you face the problem head-on and try to deal with it in the most effective manner.

A date and time for a court case will have already been arranged and will be stated on the petition. It is important to realise that there can be a considerable amount of time between your company receiving the petition and the specified court date. You will normally be allowed to continue trading before the court date, providing you are not breaking any other laws such as continuing to trade whilst insolvent. However, it is vital that your trading is nothing less than exemplary in this time period, as any trading undertook by your business between receiving the petition and the pre-arranged court date will be heavily scrutinised.

A legal representative will usually represent the company at court, although in certain circumstances, a company representative may be allowed to represent the company, if this has been approved by the courts. If your company loses the case, the Winding Up Petition will become effective immediately, and a liquidator will be appointed to sell company assets.

Pressure For Directors

Throughout this entire period, the company directors will be under pressure and thorough scrutiny. They will have to submit accounts and a list of assets to the Official Receiver or the Liquidator’s office, as well as a list of creditors that the company owes money to. 

If your business has a Winding Up Petition submitted against it, you need to act swiftly and effectively. You can seek independent and professional advice from an Insolvency Auditor who will help you make the decisions that will be most favourable to your company, and ultimately help to determine your company’s outcome. 

To avoid all the problems relating to Winding Up Petition why not call our Directors Helpline on 0800 24 0800 for FREE and Confidential Advice Now?

Business Liquidation & Insolvency Advice Line For Company Directors

Anybody who has past or present experience of running a company knows that it is both a challenging and demanding task. Several aspects of the business always seem to need constant attention and management, so it understandable under certain circumstances that businesses become insolvent. As the director of a company, the implications of insolvency and bankruptcy are very significant, and under certain circumstances, the company directors can be made individually accountable for the company’s debts. For example, if a company continued to trade despite being insolvent, the director may become liable for its debts. 

Can't Pay HMRC Tax or VAT Bill?

A company may be wound up because it has failed to pay certain creditors inc HMRC – Tax or VAT, so one or several of the creditors may file for a winding up petition. Many creditors feel disgruntled due to the money owed to them, and do their best to encourage an investigation into the director’s conduct, to see if the insolvency could have been prevented if the director had acted in different ways. This is a huge amount of pressure for a company director to be under.

If a business has been wound up, whoever liquidates the company (closes the business and sells its assets) will, in most cases, investigate the director of the company. They can also investigate anyone who assumed an unofficial role of directorship in the three years before the company was wound up. 

Insolvency Directors Investigation 

The investigation will determine whether or not the director acted appropriately in the given circumstances, and also whether they made decisions that were favourable to their creditors and their business, not just for personal gain. Under the 1986 Insolvency Act, companies are not allowed to trade when they know that they are insolvent, and this will be checked in the investigation. This illegal practice is known as “wrongful trading”, and if a company is found to have traded wrongfully, the implications for the director are very serious.

The Insolvency Service will then look into the investigation that the liquidator has carried out, and if the liquidator has found any misconduct on behalf of the director, in their report they will recommend that action is taken against the director.

There are usually two types of action that can be taken against the director. Firstly, they may receive a Director’s Disqualification for a fixed period of time. Secondly, they may become personally liable for debts acquired at the now insolvent company which they held a directorship at. You can see what a serious situation this is for a company director to be in, the future consequences are severe and drastic, and can have a negative effect on a person’s income and their credit rating. 

Each business has completely different circumstances surrounding the winding up of the company. If you are a director of a company that fears the future implications of insolvency for your business, speak to a professional Insolvency Auditor who is experienced in dealing with insolvent businesses. The insolvency auditor will help you to assess your current situation and the consequences of the decisions you make for your business.

For FREE and Confidentual Advice Tel: 0800 24 0800

A company that advertised itself as a ‘one stop shop’ for dealing with bankruptcy has been ordered into liquidation today following an investigation by The Insolvency Service.

UK Bankruptcy Limited (UKB), which was based in Dorset, but incorporated in Edinburgh, attracted clients through advertising and referrals from another official looking website called ‘IVA Council’. The investigation found the company derived the majority of its income from fees charged to clients who used UKB to make themselves bankrupt. The fees, often running into thousands of pounds, bore no correlation to the work undertaken or the extent of the clients’ level of debt. The advice given was often very basic and could easily have been obtained for free.

In some cases the fees charged to clients’ credit cards rolled into the ensuing bankruptcy whilst the amount of fees appeared to equate to the amount of credit still available on their cards. This action meant that, in effect, the clients’ creditors were funding the company’s fees with no prospect of repayment. The investigation also found evidence that some clients allowed the company to maximise the amount of fees charged to their cards, in return for which they were given “cash back”.

Between about October 2007 and June 2008 the core business of UKB was generated by leads provided by an organisation called the IVA Council (IVAC), an unincorporated association which purported to be a voluntary independent body that monitored the insolvency industry. In reality IVAC was a marketing tool that generated leads for UKB by suggesting to individuals that they had been “mis-sold” an Individual Voluntary Arrangement (IVA) and they would be better placed financially by petitioning for their own bankruptcy. Clients referred via the IVAC were almost invariably persuaded by the UKB to discontinue an existing IVA and enter into bankruptcy.

Commenting on the case, Stephen Speed, Chief Executive of The Insolvency Service said:

“At a time when finances are so tight for so many people it is regrettable that a business like UK Bankruptcy Limited should use dishonest practices to exploit the demand for debt advice for its own financial gain. I hope the action we have taken will serve as an important reminder to anyone in debt; good quality advice is freely available from charitable organisations. In addition our publication ‘In debt: dealing with your creditors’ provides an overview of the personal insolvency options.”

Notes to editors

(1) The Office of Fair Trading have issued warnings recently about firms operating in this sector with concerns over declining standards and non-compliance with their Debt Management Guidance issued in 2001. This Guidance applies to all firms providing financial management services including IVAs, personal bankruptcy and commercial credit repair. In particular the OFT have warned that firms often mislead individuals with debt problems with websites that imply they have some official status or sanction from the Government and are less than transparent about the level of their charges.

(2) UK Bankruptcy Limited was incorporated in Scotland on 1 June 1992 and its registered office is at 24 Great King Street, Edinburgh, EH3 6QN. The company carried on business from Alton Chambers, 37 Church Road, Parkstone, Poole, Dorset, BH14 8UF.

(3) The company’s debt advice business was carried on from about June 2005 to the presentation of the petition. Its association with the IVA Council lasted from October 2007 to June 2008.

(4) The investigation was carried out under section 447(3) of the Companies Act 1985 by officers from Company Investigations, part of The Insolvency Service.

(5) The petition was presented on 8 December 2008 under s124A of the Insolvency Act 1986 on public interest grounds that; the company’s business was unscrupulous, inappropriate and operated to the detriment of creditors of the company’s clients and sometimes the debtors themselves.

(6) The company’s turnover for the year ended May 2008 was approximately £2.8M and it had more than 3,000 clients.

(7) The directors and joint shareholders of the company were Sean Mason and Tobias Gooden then of Throop Road, Bournemouth, and Wimbourne Road, Wimbourne respectively.

(8) The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies, through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice. Further information about the work of the Insolvency Service is available from

http://www.insolvency.gov.uk.