If you are a director of a limited company and it cannot pay its debts as and when it falls due, then it is essential that action is taken to protect the interest of the creditors.

Failure to take advice and implement appropriate procedures can make the directors potentially personally liable for the company debts as a result of the wrongful trading provisions in the Insolvency Act 1986. Procedures can be implemented immediately to protect the company from creditor action including bailiffs and winding up petitions.

Once pressure is off, we can sit down and look at the company trading position and see if viable to continue trading going forward. It may then be possible to make a proposal to the creditors, which although may not pay them back all their liabilities will be better than the company being placed into Liquidation and employees made redundant. The company will then be free from debt in 5 years.

Debtfocus is fully licensed to implement rescue procedures such as Company Administration, Restructuring and Company Voluntary Arrangements (CVA's). If necessary the affairs of the company can be wound up and its assets disposed of in Liquidation. Employees will be paid their outstanding amounts due up to certain limits under the provisions of the Employment Rights Act 1996.Unless they have given a ‘Personal Guarantee’, Directors will not be liable for the company debts and are free to gain new employment.

Call us today for FREE confidential advice on 0800 157 7330 or email a specific question and we will reply within 1 hour.