How are funds distributed in a Liquidation and who is at the top of the pecking order? In this month’s article we discuss the strict hierarchy within the Insolvency Act, which determines the order that creditors will be paid during liquidation. […]
Insolvency Law
How Long Does the Insolvency Process Take?
It is challenging to estimate precisely how long the insolvency process will take as it depends on multiple factors, including the type of insolvency process, company size, complexity of the case, stakeholder cooperation, and court decisions. Insolvency Guide for Company Directors Navigating insolvency can be a daunting experience. It not only entails financial loss and […]
Insolvency Law
Understanding the Critical Role of an Insolvency Professional for Company Directors
The financial state of a company can change at any given moment, leaving company directors seeking critical advice and guidance. Insolvency professionals are experts that can provide support during times of financial instability. They take an independent, objective view of a company’s financial affairs, and can help directors from a range of industries to navigate […]
Administration Insolvency Law Insolvent Liquidation
The Difference between Liquidation and Administration
We’re often asked about the difference between Liquidation and Administration and when one should be used over the other. Here we cover the main differences between the two formal insolvency procedures, […]
Insolvency Law
Can I Start a New Company after Liquidation?
Directors often ask if they are allowed to start another company having previously had a business which entered into liquidation, or another insolvency procedure. This article explores the options and potential pitfalls in such a situation. In general terms there is nothing to stop a director from becoming, or continuing to be, a director of […]
Insolvency Law
Can I Re-use a Company Name after Liquidation?
Directors of a limited company which has gone into liquidation are prohibited from being involved with companies which use the same, or similar, name in the future unless specific procedures are followed. This is covered under Section 216 of the Insolvency Act and a director needs to carefully consider these before proceeding. What is Section […]
Insolvency Law
Bounce Back Loans and the Risks for Directors in Insolvent Situations
The Government’s loan support schemes have helped many businesses to weather the storms caused by COVID-19. By the end of June, over 1 million loan applications had been approved amounting to total lending of £42.9bn, of which £29.5bn related to the Bounce Back Loan (BBL). Unlike the Coronavirus Business Interruption Loan (CBIL), for which there […]
Insolvency Law
The Corporate Insolvency and Governance Bill – Proposal for a New Moratorium
The Corporate Insolvency and Governance Bill is currently making its way through Parliament and is expected to become law by the end of June 2020. There are a number of key aspects to the Bill as far as insolvency is concerned, but perhaps the most striking is the introduction of a new statutory Moratorium process. […]
Insolvency Law Legal Action
Personal Liability Notice (PLN) – When Can Directors be Personally Liable?
If a director, manager or secretary of a company fails to pay VAT, PAYE or National Insurance Contributions (NIC) deductions and HM Revenue & Customs (HMRC) consider that non-payment was due to fraud or neglect, then they have the power to issue the individual with a Personal Liability Notice (PLN). […]
Find out how taking early action and following effective steps can help businesses minimise the threat of insolvency. […]
