What is insolvency? “Insolvency is a term for when an individual or organisation can no longer meet its financial obligations with its lender or lenders as debts become due”
It is not unusual for businesses to face financial difficulty. Difficulties with cash management, reduction in cash flow and increased expenses resulting in monies owed to creditors can all pave the way to financial distress.
Insolvency cases are unique to each client and each insolvency case will have its own qualifying criteria. Insolvency does not mean bankruptcy. Bankruptcy is the legal process that serves the purpose of resolving the issue of insolvency.
SDK Law has experience of working in insolvency law and business rescue including:
• Winding up or bankrupting insolvent debtors on behalf of their creditors
• Annulment of bankruptcy orders using third party funds to avoid the DTI charge
• Administration orders
• Negotiation with trustees in bankruptcy and liquidators over debts and assets within the insolvency
• Corporate and Individual Voluntary Arrangements.
• Voluntary winding up or dissolution of companies
• Advice to company officers on liabilities following a winding up including defence of a criminal charge of fraudulent trading
• Advising a liquidator on claims for fraudulent trading and transfer of assets at an undervalue
Insolvency is not as taboo as it once was and with the arrival of administration, a business in difficulty can often be rescued if the problems are recognised. We can help with this and work with experts who can help. In recent years SDK Law has acted in a number of bankruptcy annulments. These require a great deal of care to minimise interest on bankruptcy debts and to arrange third party funding to avoid liability for additional fees payable on settlement of debts out of money vested in the trustee.