Insolvency

If a person cannot pay their debts as and when they fall due, they may become bankrupt. Bankruptcy can be initiated by a person or a creditor. A bankrupt person has another person manage their assets & property to attempt to pay any outstanding creditors. If you cannot pay your debts, contact our team today to explore some alternatives to bankruptcy.

When a company cannot pay its debts as and when they fall due, the company is insolvent. If a company is insolvent, directors should immediately obtain legal advice to ensure they do not become personally liable for the company’s debts. Corporate insolvency can lead to administration, liquidation, or receiver. Our experienced lawyers can advise directors, shareholders and company creditors on all aspects of corporate insolvency.

A company can be put into administration if it is insolvent or close to being insolvent. An administrator is appointed to manage the company affairs and determine if creditors can be paid (potentially in part) and continue operating. If you are a director considering appointing an administrator or already in administration, contact our experienced team for advice on navigating the administration.

If a company is insolvent and it appears it needs to stop trading and cease to exist permanently, a Liquidator may be appointed. The Liquidator’s job is to realise all the company assets to pay the company’s creditors. On occasion, the company may pay its debts, but the shareholders agree to cease the company. The Liquidator will do a similar job but distribute any surplus funds to the shareholders. Our team can assist directors, shareholders and creditors through the liquidation process.