Business Bankruptcy

If you have a business with outstanding debts or from a sole trader's viewpoint have remortgaged your house to finance start-up costs but are finding the current economic climate difficult you may want to consider business bankruptcy or insolvency then we can help. Use our bankruptcy guides to take you through some of the important elements of your current trading position and the options available to you.

Are you Insolvent Right Now ?

If you are trading where your liabilities are more than your assets then you are effectively insolvent and there are specific laws in the UK to address this situation that you must be aware of before you continue. In essence you can not continue trading if you are knowingly insolvent and you should seek professional advice as soon as possible perhaps from your accountant to see what your options are.

The Closing of your Company

If you are in the status of wanting to halt your company's trading then you can go down the route of liquidation which is a proceedure which will close your business and settle all the outstanding company liabilties by selling or realising assets and paying what is owed. This procedure is undertaken by a licenced insolvency practioner who is governed by law. At the end of this process they will also notify companies house that your company is no longer trading and that is the end of it.

The process will all depend on what type of company you have set up (sole trader versus limited company) as the liabilities are different in each case. For example if you have provided personal guarantees on mortgages or loans then there may be some personal liabilties to also settle.

Next Steps

You should always seek professional advice and we can help you with a free consultation. Please contact us using our online form and we will start the process and advise accordingly.