Company Insolvency2018-02-07T16:24:42+00:00

Company Insolvency

Providing suitable, reliable options

At Baxter Ramsay, we pride ourselves on our company insolvency rescue abilities. We have an extensive range of suitable, reliable options available to help your business including cash flow advice as well as help and assistance with company voluntary arrangements to ultimately ensure the issuance of a winding up order is avoided. There are unfortunate occasions where a company is no longer viable and a cessation of trade is the only option to take. Company insolvency can affect any size, shape or type of business. It can creep up on even the most previously successful and efficient companies, causing great alarm and panic. If a company is insolvent, the directors should take advice from professionals on whether or not to continue trading.  If your company is struggling to pay its creditors then you should seek early advice as soon as is feasibly possible before a potential winding up order becomes a very real possibility.

Expert Company Insolvency Solutions

Helping you to mitigate and soften the blow

There are a number of key indicators of company insolvency to look out for such as when the total amount of liabilities and debts owed to creditors is greater than the combined fair market value of the company assets. This includes book debt, bank funds, property and company equipment etc. – also known as the ‘balance sheet test’. There are also cases where one or more creditors have already taken legal action against your firm, including County Court Judgements (CCJs) or statutory payment demands. Other company insolvency situations are when your business is unable to make regular payments to its operating debt as and when they are due – this is also known as the ‘cash flow test’. At Baxter Ramsay we have encountered a great number of situations where companies have encountered insolvency problems. We are well versed in the process, having prevented the possibility of a winding up order being issued on a number of occasions to clients, and are here to make sure you can combat and mitigate the situation sufficiently well.

What are the risks of company insolvency?

Here at Baxter Ramsay, we will not rush you into making any rash decisions when it comes to company insolvency and its aftermath including a potential winding up order.  We will review your own individual company situation in detail and provide you with all of the options currently available on the financial market. We also make sure you and your fellow directors are fully aware of the pros and cons of each option so you can make an informed decision on how to proceed. We make sure you are treated with fairness, dedication and the respect due to a company in your situation as well as your status as a professional institution. In addition to the company being wound up there are a number of areas we will discuss with your directors. These include:

  • A review of the directors’ conduct whilst the company was trading
  • Any wrongful trading found will be reported to the Company Insolvency Service, which on some occasions, could result in a director being banned for a set time period.
  • Any debts that are covered by a director’s guarantee or other personal security

We can evaluate all of the potential risks for you during our consultation which will allow you to choose the best solution for you and your business. Baxter Ramsay will take you through the whole process, from enquiry to completion, with as little stress and upheaval as possible. For a free consultation please call us today on 0800 246 5603.

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