Liquidation
David’s Cameron’s Insolvency Law U-Turn Will Please Creditors
It remains to be seen why David Cameron has made a u-turn over plans to radically reform insolvency laws. Before coming to power, the Prime Minister called for the introduction of US-style Chapter 11 rules, which would give struggling businesses ‘breathing space’ to get back on their feet without having to face liquidation. At the…
Read MoreWinding Up Petitions Are the Way Forward for Creditors
In recent years, it has become popular for creditors to issue winding up petitions as a method of debt recovery. It’s something I’d recommend simply because debt recovery laws in the UK are toothless; they don’t bite. If a company owes its creditors money, the creditor will go to county court and get a county…
Read MoreMiss Sixty Judge Calls for Improved Insolvency Practitioner Regulation
In July, I suggested there should be an urgent review of how insolvency practitioners (IPs) are regulated and following a high-profile complaint by a judge it has become evident there are many others who share this opinion. Earlier this month, during an appeal against a Company Voluntary Agreement (CVA) for Sixty UK – owners of…
Read MoreWhat is an Insolvency Practitioner?
An insolvency practitioner (IP) has several roles and under the Insolvency Act 1986 can act as a liquidator, administrator, nominee and supervisor in matters relating to bankruptcy. They are authorised by the Secretary of State for Trade & Industry, the Insolvency Practitioners Association (IPA) or one of the other bodies recognised under the Insolvency Act.…
Read MoreHow Do You Protect Yourself as a Director When Your Company Has Been Liquidated?
After a company is liquidated either through a Creditors Voluntary Liquidation (CVL) or compulsorily winding up by the court, the actions of the directors during the previous 12 months usually come under careful scrutiny. If the liquidator (or official receiver) believes the director(s) in question did not act in accordance with their duties, they can…
Read MoreTo Sell or Not to Sell: When is a Good Time to Cash In on Your Assets?
If you’ve been served with a winding up petition, selling your assets should be seriously considered as a viable option to help save your business. In fact, if selling your assets is an option, the sooner you do so the better and preferably before a winding up petition have been presented against your company. If…
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