Wrongful Trading - Know if your company is Insolvent!
If you have a company which is struggling at the moment then an insolvency practitioner will be able to help you close that company down, place it into liquidation with the consent of your creditors and help you move on. Indeed it is the responsibility of directors who think that their company may be in trouble to seek advice and assistance, to ascertain whether or not the company has a reasonable chance of trading through its problems. A failure to do so can result in being taken to court by the Official Receiver or a subsequently appointed Insolvency Practitioner for Wrongful Trading and for an order that the directors make a contribution to additional losses which may have been suffered as a result of not closing the company earlier. The reason for that is that the law can make a director personally liable for the losses of a company incurred after the date on which the director should have been aware that the company could not trade out of its insolvent position. A creditors winding up if initiated at an early stage will remove this threat from a director. Insolvency Practitioners are experts in deciding whether a company is technically insolvent or not, additionally they will be able to advise if the company can trade its way through or whether it must consider a CVL or an Administration. A creditors winding up can be completed in as little as three weeks, including the statutory notice period of two weeks, so it can be over and done with in quite short measure. 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 are a director who is worried about wrongful trading you should call Steve now. 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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