Insolvency & Administration

  • A statutory demand served by a creditor who is owed more than £750, which remains unpaid for 21 days.
  • Execution or other process issued by a Court in favour of a creditor which is not satisfied by the business or individual.
  • It is proved to the satisfaction of the Court that the business or individual is unable to pay their debts as they fall due.
  • Monthly payments due to creditors are unlikely to be met, or are not being met.
  • Expenses are being incurred and there is a reducing likelihood of settlement, particularly where there is a build-up of PAYE and VAT liabilities.

The above are very simplistic explanations of what are very complex and involved issues. It would be very easy for an individual or the director of an insolvent company to commit criminal offences or leave themselves open to civil recovery actions , even unwittingly, so proper professional advice should always be sought. The consequences for a director not behaving properly in an insolvent situation can range from being disqualified from being a director for a period of time to making themselves personally liable for the company’s debts, or even facing criminal proceedings.

Seek professional advice early. At Cooper Young, our initial advice is free.