As a small business owner, handling small business debt recovery demands from creditors can be overwhelming. This guide offers practical steps to navigate these challenges to protect your business. Understanding Small Business Debt Recovery Demands Creditors may ask small businesses…
Why Are HMRC A Priority Creditor? âIt is crucial for businesses to understand the gravity of prioritising payments to creditors during times of financial distress,â says Tom Fox, Licensed Insolvency Practitioner at Umbrella.UK Insolvency. âWhile preferential payments can be challenged…
When a company is insolvent company directors must prioritise the interests of the company's creditors. If the company continues operating as normal this is known as trading while insolvent.
Trading while insolvent is unlawful and can have serious personal consequences for directors.
If you're a director and you knowingly trade while insolvent, you can be held personally responsible for company liabilities and you can be disqualified from holding other directorships.
How do I know if my company is insolvent?
According to the Insolvency Act 1986, a company is insolvent if it can't meet its day-to-day obligations.
This includes:
Pizza Express will close 73 UK restaurants, including sites in Bramhall and Glossop, after the company’s creditors agreed to a Creditors Voluntary Arrangement (CVA). The move, which puts more than 1,000 jobs at risk, will allow the chain to reset…
High street stalwart Debenhams has become the first UK business to start a new kind of insolvency process â one designed to protect companies from their creditors during the pandemic. The new ‘light touch’ administration allows company directors to file…
How to Close a Solvent Limited Company If a company has the money to pay its bills then it is solvent. Solvent companies are relatively easy to close. The cheapest way is to get a company struck off the Register…
Buried deep in the Chancellor’s recent Budget was a new measure that gives HMRC priority over other creditors when claiming money back from an insolvent business. The move will reinstate HMRC as a ‘preferred creditor,’ while currently it is on…
Limited company directors are not automatically liable for their business debts, but there are two main circumstances under which the director would be held responsible for the debts. The director would be responsible if they have offered a personal guarantee…
Our friendly and experienced insolvency team is here to help you find the right way forward. Whether your business is facing financial pressure, creditor or HMRC issues, or you’re considering closing your company, we’ll provide clear, confidential guidance and practical support every step of the way.
Call 01625 546 240 now or request a callback from a Licensed Insolvency Practitioner below.*
Main Office: 01625 546 240
E-mail: contact@umbrella.UK
Fax: 01625 522 572
Umbrella.UK Insolvency
Bollin House
Bollin Linkâ¨
Wilmslow
Cheshire
SK9 1DP
Monday - Friday (closed bank holidays)
8.30am - 5.30pm
