FAQs

Insolvency means your business cannot pay its debts on time or has more liabilities than assets.

Insolvency is a financial state where a person or business cannot pay debts, while bankruptcy is a legal process declaring insolvency and outlining how debts will be handled.

Common signs include struggling to pay suppliers, rent, or tax bills, receiving legal demands for unpaid debts, and relying on short-term loans to cover expenses.

An insolvency specialist can help you explore all your options, negotiate with creditors, and guide you through legal processes to minimize losses and protect your business or personal assets.

Yes, depending on your situation, we can explore restructuring, payment plans, or voluntary arrangements to keep your business running.

Ignoring debt issues can lead to legal action from creditors, including court judgments, asset seizures, or being forced into bankruptcy or liquidation.

Options include:

• Company Voluntary Arrangement (CVA) – A structured repayment plan with creditors.

• Administration – Restructuring or selling the business to keep it running.

• Liquidation – Closing the business and selling assets to pay debts.

• Time to Pay Arrangements – Negotiating with HMRC for tax debts.

Good financial management, regular cash flow monitoring, cutting unnecessary costs, and seeking early advice when struggling can help prevent insolvency.

The cost depends on the solution required. Some fees can be covered as part of the insolvency process, but we offer free initial consultations to discuss your situation.

You may consider options such as an Individual Voluntary Arrangement (IVA), Debt Relief Order (DRO), bankruptcy, or informal agreements with creditors.

An IVA is a legally binding agreement with creditors to pay off debts over a set period, usually 5 years.

Yes, insolvency solutions like bankruptcy or IVAs will negatively impact your credit score for several years.

Options include a Company Voluntary Arrangement (CVA), administration, liquidation, or restructuring.

Liquidation involves closing the business and selling assets to repay creditors, while administration aims to restructure or sell the business to continue operations.

In some cases, yes. If wrongful or fraudulent trading is found, directors may be personally responsible for company debts

A CVA is a formal agreement where your business repays its debts over time while continuing to trade. It helps avoid liquidation.

Liquidation is the process of closing a business, selling assets, and distributing the proceeds to creditors. It may be necessary if the business cannot recover.

If you rent your shop, your lease may be terminated, and the landlord could repossess the premises. If you own it, it may need to be sold to repay debts.

Creditors may take legal action, issue a statutory demand, or petition for bankruptcy/liquidation.

A statutory demand is a formal request for debt payment. Ignoring it can lead to legal action, including bankruptcy proceedings.

It depends. If you have equity in your home, it may be sold to repay debts, but there are some exemptions and protections.

In most cases, personal bankruptcy lasts for 12 months, after which debts are written off.

Directors must be careful. Trading while knowingly insolvent can lead to legal consequences. Seek professional advice.

Yes, certain insolvency solutions, such as bankruptcy or IVAs, will impact your credit score for several years.

Yes, but there may be restrictions depending on the type of insolvency process you go through. For example, if you go bankrupt, you cannot be a company director for a set period.