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Larking Gowen's insolvency services are supported by a team of Licensed Insolvency Practitioners and a specialist business recovery team.
You'll get friendly impartial advice, based on years of experience to guide and support you throughout the process of getting your business back on track, restructuring your debts and negotiating with creditors.
This is the government’s choice of corporate insolvency procedure. It's a process where the administrator must be a Licensed Insolvency Practitioner who's appointed to act for all creditors collectively.
An administration can begin in a number of ways, all of which can lead to your business continuing to operate.
This is the corporate equivalent of an Individual Voluntary Arrangement (IVA). A CVA is a legally binding agreement and requires the supervision of a Licensed Insolvency Practitioner.
The CVA has many advantages over other corporate insolvency procedures because there is no directors' conduct report and the directors are free to continue managing the company. If successfully concluded, shareholders retain the business.
A CVA is usually only suitable where there is a good profitable business that, for example, has suffered a significant bad debt, employee theft or any event that has eroded the capital and requires restructuring.
This is the most common form of insolvent liquidation and is considered a terminal event.
Only a Licensed Insolvency Practitioner can be appointed as liquidator and the process is relatively straightforward to implement. The advantage over other insolvent liquidations is that it is quicker and easier to access and provides for director choice of the proposed liquidator. Directors in appropriate circumstances even receive redundancy payments from the Redundancy Payments Office.
An IVA is an alternative to bankruptcy and requires a Licensed Insolvency Practitioner to carry out. It allows the business to continue trading, and can be flexible allowing for variations to creditors.
This is a formal, court-based procedure started by either the debtor or a creditor. The Official Receiver is initially appointed in most cases. All business and personal assets are realised for the benefit of creditors. The restrictions of this arrangement can make continued trading difficult.
If you have debts, have been issued with a bankruptcy petition or have already been made bankrupt, come to see us on a no cost basis to explore the options.
In some cases, bankruptcy can be the right solution but its consequences are long lasting and can be severe, so it's important to be fully aware of the choices available to you.
A Members’ Voluntary Liquidation (MVL) is a solvent liquidation where the directors declare that all debts and interest will be discharged within 12 months.
Despite being a solvent liquidation a Licensed Insolvency Practitioner is still required to act as liquidator. Directors and shareholders choose the liquidator with no input from creditors.
MVLs are often used as part of a tax planning strategy when entrepreneurs' relief may be available or as part of a restructuring under section 110 of the Insolvency Act.
If you have insolvent clients or a client whose finances you're concerned about, we recommend taking advice early on to provide a greater range of options and probably at a lower cost.
We also recommend professional advisors have at least one Insolvency Practitioner contact so you're ready to bring them in when you need to.
At Larking Gowen we offer a free initial consultation and would be happy to meet you and your team to outline options for specific cases or as part of a training event.
Company directors have significant responsibilities and these come into focus, sometimes in unexpected ways, when a company goes into liquidation.
If a director has breached their duties in some way, it's possible they could lose the protection provided by operating as a limited company and be liable for debts.
In some cases transactions, such as the payment of dividends to directors, can be reversed, even those going back as far as five years.
Death is obviously distressing for family, friends and employees. We have experience of dealing with deceased individual insolvent estates and also with companies where the directors have died.
There are both formal and informal routes and we can meet with you on an initial no cost basis to discuss options.
With significant experience of business recovery and insolvency, a team comprising three Licensed Insolvency Practitioners and a number of other experienced staff, we can provide services to creditors which include the following:
All of this can be discussed without any cost to you.
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