Company Insolvency - what to look for if you think you might be insolvent
You can spot whether your company may be in the grip of some financial distress with two classic tests. Are your assets less than your liabilities and can you pay your debts as and when they fall due? If you fail either of these tests then your company may be insolvent. However, just because you fail the tests it does not mean that you face company insolvency. There are plenty of rescue remedies available under the Insolvency Acts If when you consider the matter further, you also recognise these additional signs, I would suggest that you call a debt helpline to discuss what you could do to alleviate your problems. Additional signs of insolvency Are you failing to make your vat and tax payments on due dates? Are you having cheques returned by the bank? Are you continually at the ceiling on your overdraft? Are you changing suppliers for new lines of credit? Are you personally putting money in the business to keep it afloat? If you recognise any of these signs then your company may be insolvent. You may still have a viable and vibrant business that with a few changes, could flourish without these problems. An insolvency expert can help you find a solution. 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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