© 2019 Alexander Lawson Jacobs Ltd  |  Designed by Pelekan Design

Registered office: 1 Kings Avenue, London N21 3NA
Company registered in England No 5814561.  VAT No  884 3058 04.  Legal & Regulatory

Corporate Services

Corporate Services

A company is insolvent when it can’t pay its debts. This could mean either:

  • it can’t pay bills when they become due

  • it has more liabilities than assets on its balance sheet

 

A company that is insolvent is in danger of being closed down. However, company directors may be able to take action that allows the company to continue trading.

 

If your company has financial problems, even if you think they might be temporary, you should ensure you understand the options and their consequences.

Ways to deal with your company’s insolvency

‘Insolvency’ describes both the situation an insolvent company is in, and also the various legal procedures for dealing with this situation under the Insolvency Act 1986.

There are 3 options that allow an insolvent company to continue trading. Directors can:

  • contact all the creditors to see if you can reach an informal agreement

  • enter into a company voluntary arrangement

  • put the company into administration, offering some respite from creditor action and enabling:

    • the company to continue

    • property to be sold

You also have the option of liquidating (‘winding up’) your company. This means the company is closed down and its assets are sold and distributed to its creditors.

Get in touch to find out more.

Corporate Services

Company Voluntary Arrangement (CVA)

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Administration

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Liquidation

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Personal Services

Individual Voluntary Arrangement
(IVA)

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Time to Pay Arrangements

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Bankruptcy

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