A company becomes insolvent if it does not have enough assets to cover its debts and/or it cannot pay its debts on the due dates.
It is the responsibility of the directors to know whether or not the company is trading while insolvent and they can be held legally responsible for continuing to trade in that situation.
If your business should run into financial difficulties, and after exploring all options you are left with no alternative but insolvency, we can help you to carry out your legal duties.
There are various different options for a company in financial trouble, and here at Atherton Godfrey we have a team of experts who can guide you through these options and help you to assess which would be most appropriate for your business.
An insolvency situation will have implications for everyone, from shareholders to employees working in the company. We can advise on the impact your situation will have on all affected parties and guide you through what you responsibilities are to each.
This will undoubtedly be a difficult time for any business, but we will endeavour to ease the situation by talking through the options in a way that is easy to understand to help you decide how to move forward.
We can give you advice on your options including:
- Company voluntary arrangements
- Administrative receivership
- Voluntary winding up
- Compulsory winding up
If you would like advice on a business in financial difficulty, please contact our team today.