The specialist insolvency solicitors at Wilford Smith understand that every insolvency situation is different. Whatever your circumstances, we have the skills and expertise to handle every type of insolvency situation professionally and pragmatically, helping reduce the risk to which your business is exposed and safeguarding your position.
Our insolvency team take instruction from a wide range of clients from across England and Wales at all stages of the insolvency process. Regardless of whether you have recently experienced difficulties in paying debts or insolvency proceedings are underway, our expert solicitors can help. Advising our lawyers at the earliest stage can be invaluable, enabling us to provide you with general advice regarding the solvency of your business and to explain the full range of options available to you in a clear, jargon-free manner.
Commercial Insolvency Solicitors
A company is insolvent if it is unable to pay its debts when they fall due or if the value of its assets is less than the sum of its liabilities. There are many reasons why a business might become insolvent – common causes of insolvency are loss of market, loss of long-term finance, excessive overheads and fraud.
The objective of the insolvency procedure is to maximise returns for creditors, with the method used to achieve this depending on the circumstances of the business in question. In many cases, an insolvency practitioner will attempt to save the company provided this will offer a better return for creditors.
Company Voluntary Arrangement (CVA)
A CVA is when a company makes a voluntary arrangement with creditors to pay off outstanding debts. A CVA will be supervised by a licensed insolvency practitioner and enables the business to continue trading so that debts can be repaid.
Administration is a formal procedure whereby an insolvency practitioner is appointed to manage the company’s affairs for the benefit of its creditors. The business will usually be able to continue trading and will be protected against enforcement action being taken by creditors. The insolvency practitioner may be appointed by:
- The directors
- The company
- The holder of a floating charge – typically a bank or other lender
An insolvent company may be put into liquidation (sometimes referred to as 'winding-up') which will result in its ceasing to trade. The sale of any assets will be used to pay creditors. If a company is insolvent, liquidation may take one of two forms:
- Voluntary Liquidation – proposed by directors and supported by 75% of shareholders
- Compulsory Liquidation – the result of a winding up petition being issued by a creditor
Contact our Insolvency Solicitors
We pride ourselves on our reputation for offering a uniquely client-focused service, delivering high-level legal support that is tailored to meet your specific needs. We take an approach that is both proactive and responsive – our lawyers have a comprehensive knowledge of insolvency law and experience working alongside other relevant professionals meaning they are excellently placed to form the best strategy for you as quickly and effectively as possible.
Call our specialist Insolvency Solicitors on 01709 828 044 to find out how we can help, or complete our online contact form.