Company Bankruptcy - otherwise known a s the CVL
A company can be insolvent, and then chances are that if you have landed on this article, you are looking for advice as to how best to deal with your business, which may at this time be unable to pay its liabilities as they become due. The good news is that by seeking advice, at this stage, you may well avoid problems that sometimes arise when people just ignore their problems, and by that I mean, directors wrongful trading. If your company is facing a bankruptcy problem, then a solution for every situation exists. Some companies are only in trouble because they have short term cash flow issues. If there are freely available assets then these problems are simply overcome, via something like factoring or invoice discounting. This may mean that by releasing the cash tied up in invoices which may take months to be paid, an insolvency procedure can be avoided. Where the company problems are more structural and bankruptcy is a possibility, then an insolvency practitioner can assist in closing or liquidating the company whilst saving the business. This is done by pre-pack liquidations or administrations. This has the benefit of saving the jobs of staff, and means that contracts can be novated and finished. In other cases it is simply right and proper to close a businesses doors and cease to trade whilst at the same time, making sure that the law is applied and the company legally closed so that all the creditors of the business know what has happened and can recover some sums such as VAT. In Leicester and Nottingham in the East Midlands recent insolvency statistics have revealed that in the last quarter of 2008, figures reveal that creditor's voluntary liquidations rose by 14.1%. If you are based in the East Midlands and need to take advice on this matter please contact an Insolvency Practitioner. Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company. For all further reading see http://www.helpwithdebtuk.com for personal contact email sthatcher@helpwithdebtuk.com For Steve's thoughts see http://steves-debt.blogspot.com If you think that you may need to speak to someone about a company bankruptcy, please contact Steve. Finally if in the UK and you need a friend to speak to call 01162171406 About Author Steve is a qualified solicitor who specialises in debt solutions for businesses and companies alike. From pre-pack administrations to walk through bankruptcys he is always free to talk to. Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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