If your business is experiencing financial difficulty you may be thinking of seeking professional insolvency help to rescue the company, or close it down via an official procedure.
Or perhaps your company is solvent but it serves no further purpose, or you wish to retire? In either case, as a company director you can appoint your own licensed insolvency practitioner (IP) to advise and provide practical support.
An IP will offer a professional assessment of your business’ financial position. This is a crucial factor if you believe your company may be insolvent, as it’s important that you don’t trade under these circumstances.
You can seek assistance from an IP without entering an official insolvency process - if your company hasn’t yet reached the point of insolvency but you’re worried about a serious financial decline, for example.
You don’t need to have entered insolvency to appoint an IP – you can do so at any time. It’s important to ensure an insolvency practitioner is licensed before you appoint them, however. A licensed IP will have undergone extensive training, and is regulated by a professional body.
Strict insolvency laws in the UK mean that any delay in seeking professional help could result in accusations of misconduct, or even illegal trading. It’s also possible that a creditor could be planning to wind up your company, which would then leave you unable to appoint your own choice of insolvency practitioner.
You might also believe that you’re acting in the best interests of creditors by carrying on trade and trying to steer the company out of financial difficulty, but you have a legal obligation to cease trading immediately if you think you’re insolvent.
A liquidator investigates the actions of all directors during the time leading up to insolvency, and if they believe you’ve acted against the interests of creditors you could be held personally liable for some or all of their losses.
You can search for an insolvency practitioner in your local area on the Insolvency Service website, where you’ll find a directory of IPs with their contact details and regulatory body information.
This directory doesn’t include all insolvency practitioners in the UK, however, and if you’ve received a recommendation from your accountant or another professional, you might also want to follow it up.
As we’ve mentioned, it’s important to check that an IP is licensed before proceeding, so you know you’ll receive accurate advice that you can trust. UK Liquidators are licensed insolvency practitioners with more than 25 years’ experience, and can offer you a same-day consultation free-of-charge.
It’s also worth knowing that if you’re facing the insolvent liquidation of your company, we can advise you on director redundancy and whether you’re eligible. It’s not widely known that under certain conditions, company directors can claim redundancy pay and other entitlements, but a successful claim could alleviate an extremely challenging financial situation.
We can also provide guidance on rescue and recovery measures if it’s appropriate to do so, such as company administration or debt restructuring. Depending on your individual circumstances, insolvent liquidation may not be the only option.
For more information and guidance, and to arrange your free same-day consultation, please call one of our partner-led team. We operate a broad network of offices around the UK, and will provide the reliable professional advice you need to comply with the stringent insolvency laws in this country.
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If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
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