Insolvency
Insolvency occurs when a company is no longer able to meet its outstanding liabilities.
Company directors must decide what action to take to maximize the return to creditors whilst also avoiding the possibility of insolvent trading, which can make the directors personally liable for the company's debts. The company may choose to enter into an informal arrangement with its creditors, known as voluntary administration, or alternatively, its creditors may initiate winding up proceedings, putting the company into liquidation.In the event of liquidation the company is wound up and ceases to exist as a legal entity.
Insolvency raises complex issues for both creditors and directors.
At Stacks/Business we utilise our extensive experience in corporate insolvency to advise our clients on their rights, and any liabilities which may arise. Our team will advise appointees in relation to their statutory obligations and the statutory recovery actions which are available to them, including insolvent trading, unfair preferences and voidable transactions, as well as avenues of litigation.
We will also
assist both secured and unsecured creditors in filing a statement of
claim or statutory demand in order to recover their debt, and advise
potentially insolvent companies with regards to the risks of continuing
to trade while insolvent.
Our insolvency services include:
- Administration, receivership and liquidation
- Corporate recovery
- Enforcing the rights of secured creditors
- Insolvent trading claims
- Retention of title claims
- Enforcement of third party guarantees
- Voidable transactions
- Director’s duties
- Formal insolvency appointments
- Insolvency disputes
- Voluntary administrations