You might have seen terminology online such as “business bankruptcy” or “company bankruptcy” – however, technically, a business cannot be ‘bankrupt’.
Bankruptcy is the term used for individuals, whereas the correct term for businesses is “insolvency.”
However, in popular usage the two terms have become interchangeable. So if you are looking for information regarding bankruptcy for your own business and you see the term “insolvent”, you know you’re in the right place.
It is worth noting that if you are the owner of a company, you may be personally liable for your business debts. In that case, you might have to file for personal bankruptcy rather than make your business insolvent. It’s extremely important that you find out whether or not you are personally liable for your business debts.
What to do if your business is insolvent
If you think your company is heading towards insolvency or is insolvent (i.e. it cannot pay its debts when they are due) – we can help you. We offer free, initial advice to everyone with no obligation.
If a company finds itself in this kind of situation, it is sometimes out of the company owner’s control. Any number of factors can cause a business to get into trouble but the most important thing to do now is to be pro-active.
By acting quickly, you give yourself, your company and your reputation more options of what to do. It’s no use burying your head in the sand and hoping everything will sort itself out. This is likely to make matters much worse.
If you approach us for our expert advice early enough, we may be able to help you get your business back on its feet. However, if your company does need to be liquidated, we can guide you through the process of a Creditors’ Voluntary Liquidation (CVL). A CVL is generally better than being forced into Compulsory Liquidation.
Other options for insolvent companies include a Creditors’ Voluntary Arrangement (CVA) and a Pre-Pack Administration.
Having discussed your particular situation, we will advise you which option is the best one for you to take now – always bearing in mind your legal obligations to your creditors (i.e. the people you owe money to). This advice if free.
With Clarke Bell’s help, you can rest assured that every loose end of your business will be tied-up in a correct and legal way. You’ll then be able to move forward with your life and onto your next business venture.
For more information on what to do if you think your business is insolvent, contact Clarke Bell today on 0161 907 4044 or [email protected]
