Businesses and individuals will be concerned about their finances and liquidity during the ongoing coronavirus epidemic, including liquidation advice, due to the difficult economic situation it has created.
The Government is trying to take action to prevent the closure of businesses or loss of income, however, the reality is that many firms are likely to face insolvency, as are many individuals.
Undergoing insolvency proceedings can be stressful and emotional so it is important that you have a trusted advisor that you can rely on.
If your business is facing the prospect of insolvency, then there are several options available to you, from a company voluntary agreement (CVA) through to administration.
You must consider which option is most appropriate to your situation and seek legal advice.
A CVA will enable to you pay your creditors over a fixed period, if your limited company is insolvent and your creditors agree. We can provide advice on the legal considerations around CVAs.
If your limited company is insolvent and you cannot agree a CVA or do not wish to, you can liquidate the business in order to use its assets to pay off the debts. You could also be forced into liquidation in circumstances where you cannot pay your debts.
We are able to advise on the full range of legal considerations around liquidation.
Many of those affected by the closure of companies, debts or loss of investments may need to consider personal insolvency options, which include:
- Individual voluntary arrangement (IVA)
- Debt relief order (DRO)
If you are considering taking any of these steps in the coming months it is vitally important that you speak to a solicitor.
We represent both individuals and companies on matters relating to corporate and personal insolvency, restructuring and corporate recovery. Speak to us today for specific advice tailored to your situation.