Every business owner wants their company to be successful. However, it is a fact that many company owners have to face up to the threat of insolvency. This can mean that you could face a large amount of financial loss and employees will be out of work.
If your company is facing insolvency, then the most sensible thing to do is to look for a lawyer that has a large amount of experience in this area. How can they assist you when your business is in financial difficulty and could cease to exist?
Help The Company To Enter Administration
When a company enters administration, all the company control is passed to a third-party administrator. The aim is to make sure that the company debts are paid off as efficiently and quickly as possible. Control of the company can then be returned to the original owners and they will be able to continue running the business without the threat of liquidation as a concern.
The administrator will attempt to raise money that will be given to the creditors of the business. This is done by selling off the assets of the business. The assets can be physical, such as buildings and land. Also, the assets can come in the form of stocks and patents.
You can find a lawyer which handles this aspect of business law. Experienced company solicitors in London will enable a company to get back on its feet once all of the debts to the creditors have been paid in full.
Create Arrangements With Creditors
Sometimes it is not possible for businesses to pay their debts at a previously agreed point. This means that the business should hire an experienced team of lawyers to act on their behalf. The solicitors will enter a period of negotiation with the creditors.
These negotiations will aim to work out a payment structure that is suitable for the business and satisfactory for the creditors who are owed the money. Once the plan of action has been agreed, the business can make these scheduled payments. This removes the risk of any legal action being taken by the creditors.
Assist With Winding Up And Liquidation Proceedings
A winding up order is handed down by a judge on behalf of the creditors who are owed money. It gives a business certain of time to pay their debts before it faces liquidation. You can hire a team of lawyers to help you when you have been issued with a winding-up order from the courts.
If a business cannot pay the debt after the winding up order, then it will be liquidated. You can also hire an experienced solicitor who is going to help you with the liquidation process.
Advise Directors About Wrongful Trading
Wrongful trading occurs when a company continues to operate after the point when directors knew that the company couldn’t avoid liquidation. You need to hire a lawyer when this happens.
You can hire an experienced lawyer to help your business with financial difficulty.