BANKRUPTCY TRIGGER POINTS
There are usually a handful of trigger points that make a business realise it is in trouble. These are:
- Being unable to pay the employees
- The bank calls in its loans or overdrafts
- A bailiff calls and ceases goods (or)
- HM Revenue and Customs start bankruptcy proceedings
There are others trigger points as well such as a review of your monthly accounts with your accountant.
When your back is against the wall (with debts) the first decision to be made is whether or not the business could be viable in the future?
If it is viable, then there are a variety of options to avoid bankruptcy or liquidation. These are an Individual, Partnership or Company Voluntary Arrangement or a pre-pack administration. If not viable then the usual solution is bankruptcy or liquidation.
A WORD OF ADVICE
In both cases, it will be worth talking to a licensed insolvency practitioner first to make sure that you are choosing the right option for you and to understand any potential downsides – for example, losing your home, the effect on your credit rating or the implications of any guaranteed debts.
Licensed Insolvency Practitioner at Neville & Co.
If your business is facing financial problems I can help you with clear and impartial advice on your options.
I can discuss with you the pros and cons of liquidation, company voluntary arrangements, administration or whether a time to pay agreement is more appropriate. All information given to me is confidential and no question is too stupid to ask. I will do the best I can to help.