My Business Is In Financial Difficulty
Every business experiences cashflow challenges at some point in its lifecycle. It’s not always easy to recognise when help is needed, or to acknowledge that you have lost control of the situation. It is important to remember though that there are steps you can take and, generally, the earlier you seek help, the more options are likely to be available to you.
The sections below highlight some of the many ways in which we can help businesses experiencing financial problems.
If your company is struggling to find a way of paying its creditors, the spiral of debt may seem inescapable. All is not necessarily lost. Administration could be an option for your company. It is a way of rescuing your company through the appointment of an administrator who restructures your company in order to pay its debts. Crucially, it releases your company breathing space to deal with its creditors. We will guide you through the process, advising on your rights and your responsibilities.
Deed of Company Arrangement
When creditors are putting you and your business under pressure, you may feel that negotiation is impossible. However, a deed of company arrangement is a process of compromise which could allow your company to pay its unsecured creditors an agreed amount with the remainder of its debt being written off. Talk to us about whether a Deed of Company Arrangement could be an option for your company.
When your bank or other secured lender has decided that they have waited long enough for their money, they may appoint a receiver and manager whose job it is to take over the management of your business. The receiver’s aim is to make enough money to pay some of your liabilities, including the sums owed to the secured creditor. This process does not necessarily spell the end of your company and liquidation does not have to be the next step. Talk to us about achieving the best possible outcome.
If your business is unable to pay its debts then a creditor can put the company into liquidation, which means that it is brought to an end. A liquidator is appointed to realise any assets in order to pay liabilities. You may be forced into liquidation by a creditor, but there are circumstances in which voluntary liquidation is a sensible step to take (to avoid liability for insolvent trading, for example). We may be able to help you protect your position, whatever stage your debt problems have reached.
If you are struggling to pay personal, as opposed to business, debts, then bankruptcy could be imminent. The process can be started by a creditor, or by you. Either way, it is important that you protect assets including your family’s interest in your matrimonial home. We are here to advise on the right steps to take at the right time.
Structured Arrangements with Creditors without Bankruptcy
If you are unable to pay all of your personal debts, but could afford to pay some, an arrangement with creditors could be right for you. We could help you negotiate payments to your creditors, releasing you from liability to pay any more and stalling or eliminating the risk of bankruptcy.
Debt and Asset Recovery
The commercial reality is that you may be unable to pay your creditors until you have been paid money that you are owed. We can help you recover debts and any assets that are due to be returned to you because of a debtor’s default on payments.
While your business or personal property may be precious, it is also a valuable asset that you could sell to satisfy your debts. The ramifications of losing your premises or your home can be serious, so talk to us about how this could work for you. If you decide to press on with the sale, or are forced into it, we can drive the legal process through while protecting your personal and professional position.