Frequently Asked Questions
1. I’m already bankrupt – what can I do?
Bankruptcy need not be the end of the story. In certain circumstances it can be the best option, but depending on the situation, a bankruptcy order can be reversed (or “annulled”) if creditors are willing to accept an alternative arrangement. You will need to decide whether it is in your best interests to propose an alternative arrangement to your creditors.
2. A creditor has presented a winding up petition against my limited company – what can be done?
A winding up petition is a sign that your creditors have lost patience and that they want to force the company to either pay up, or be closed down. However, it may not be too late to turn the situation around. Firstly, it’s important to check the validity of the winding up petition. Is the creditor really owed the money they are claiming? If they are, it may be that they are willing to accept an alternative plan, for example a Company Voluntary Arrangement (or CVA). We will help to negotiate with creditors and we can help you to formulate a CVA proposal. Once a CVA is approved by creditors, the petition will be dismissed by the court.
3. The word “insolvency” sounds scary – how can an Insolvency Practitioner help me to sort out my financial problems?
A licensed Insolvency Practitioner has the skills and experience necessary to deal with all statutory insolvency procedures under the Insolvency Act 1986. These range from liquidation and receivership (which usually lead to the company closing down) through to voluntary arrangements (CVAs and IVAs) and administrations, which aim to protect a business from its creditors and to allow it to deal with its debts in a responsible an constructive manner.
A key part of an Insolvency Practitioner’s role is to weigh up the advantages and disadvantages of each procedure and, where possible, to avoid the need to use statutory insolvency procedures at all, if an informal agreement is a better solution. Often, an Insolvency Practitioner can act as a mediator between a business and its creditors, to help to reach a workable agreement. You’ll see from our logo that Moorhead Savage is committed to “financial turnaround” – in other words, we always try to rescue a business and to turn the situation around wherever possible. Think of us as business doctors, not company undertakers.
4. I’ve got a good accountant already, so why do I need to take advice from an Insolvency Practitioner?
Insolvency issues and debt advice can be difficult and highly complex areas. Insolvency Practitioners have the training and experience to provide expert advice on all the available options. They approach each assignment from an impartial viewpoint and are often able to identify opportunities and strategies that may not be readily apparent to those who are unfamiliar with the insolvency legislation or who are too closely involved with the business.
If you would like further information or would like to discuss your options please call 01709 331300 or email email@example.com