What does insolvency or being insolvent really mean?
Being Insolvent means, someone can force your business into bankruptcy, or use a winding up petition to force you into compulsory liquidation.
More importantly it means that various actions you take, or transactions/payments you undertake can cause problems for you in the future. These include asset transfers being overturned or payments being recovered, you may even become personally liable for company debts or specific transactions you and/or other directors enter into.
To put it simply, if you are insolvent you should seek advice from a professional insolvency practitioner as soon as possible in order to protect yourself and any other directors from unnecessary personal liabilities.
Is insolvency the same as Liquidation/Bankruptcy/IVA/CVA/Administration?
Insolvency at its core means you are unable to pay your debts, or that you have more liabilities (debts) than you have assets.
Whereas the others (see below) are processes to deal with insolvency.
Individual Voluntary Arrangement (IVA)
These are in the Insolvency act as different procedures for dealing with insolvency. Some allow you to maintain operating your business while paying back your debts over a period of time. Other procedures are there to define the processes of declaring yourself bankrupt or placing your company into Liquidation.
Whatever your insolvent position our insolvency experts can help you with all of the insolvency processes and give you the advice for is best for you as an individual or a company/LLP/partnership.
What should I do next?
There are many different options in dealing with insolvency. It can be quite difficult to tell what the best option for your situation might be. Lucas Ross has over 60 years’ combined experience helping people in your position. You can call our expert insolvency practitioners on 0330 128 9489 for free insolvency advice on what steps to take next, or alternatively contact us at firstname.lastname@example.org