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Showing posts from February, 2022

What’s The Best Corporate Recovery Service to Change My Situation?

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The year 2022 is definitely the annus horribilis for many businesses throughout the United Kingdom. From the national lockdown in March and on to the current day, there are very few businesses that have not been adversely affected by the coronavirus pandemic. Licensed insolvency practitioners have never been so busy. Businesses across all industries are struggling to stay open. Seeking the advice of an insolvency practitioner does not necessarily mean that the company is about to enter administration or be in the position of progressing to liquidation. In fact, it is better to seek help from an insolvency practitioner sooner rather than later as there is a range of corporate recovery services to consider which may also be viable options. READ MORE

Is It Possible in the UK to Takeover a Limited Company that’s in Receivership or Liquidation?

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When a limited company enters receivership, also known as administrative receivership, it is usually because it has serious cash flow problems and is insolvent. The same can be said for a company being liquidated. Both processes are for insolvent limited companies and must be handled in accordance with the Insolvency Act 1986. However, the process and applicable rules for each are very different. It’s not possible to take over a limited company that has entered the liquidation process, but it is possible to take over a limited company in receivership. The difference between liquidation and receivership Before we look at the limited company takeover process, let’s clarify the difference between liquidation and receivership. Liquidation is a process to realise the company’s assets to pay back creditors prior to the company being closed down. Receivership is a process whereby a floating charge holder can seize assets to realise their value as payment, but not for any other creditors. READ

Is There a Difference Between Insolvency and Bankruptcy?

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There is a mistaken belief that insolvency and bankruptcy mean the same thing. However, whilst the terms do have similarities, there are several distinct differences between the two. First and foremost, insolvency is the financial state of a company or an individual, whereas bankruptcy is the legal procedure when an individual has been declared insolvent. However, in reality it’s not this simple so, let’s take you through the difference between insolvency and bankruptcy. What is insolvency? Insolvency is when a company or an individual is unable to pay their debts when due. There are two states of insolvency – balance sheet insolvency and cash flow insolvency. ● Balance sheet insolvency – is when a company or individual’s debts are higher than the total value of their owned assets. However, this does not necessarily mean they don’t have any cashflow. ● Cash Flow insolvency – is when a company or individual’s assets are higher than their liabilities but there is insufficient cash flow,

How to Overcome Financial Loss Issues with a Reliable Insolvency Company

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Businesses in the UK are battling the onset of the Omicron coronavirus variant which threatens recovery across the UK, due to the re-introduction of restrictions, and may be a cross too much to bear for many. Insolvency has been knocking on the door throughout the past couple of years but closing the business doesn’t always have to be the only option. Working with a reliable insolvency company , it is possible to overcome financial loss in business through the use of careful planning, restructuring and rescue packages. But first, you need to understand what financial loss is and how it has occurred. Financial loss and the reasons why it happens Financial loss in business is quite simply a matter of more money going out than coming and therefore, the business is not able to afford its debts. There can be any number of reasons why a financial loss has occurred; indeed, it is often not one specific reason but a combination of several circumstances. The most common reasons why a financial

What is creditors voluntary liquidation and how Creditors Voluntary Liquidation Works and the Effect on the Business?

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 Creditors voluntary liquidation is a formal insolvency process in which the directors of a company voluntarily choose to stop trading and wind up the insolvent company. A company has to go through from both good and bad times. when a company is suffering from debts and the creditors are demanding for the repayment than the directors of the company have two options the one is creditors voluntary liquidation and another one is compulsory liquidation in which creditors will have petitioned the court and forced the company into compulsory liquidation. A CVL is a formal insolvency process in which the directors of a company voluntarily choose to cease trading and wind up the insolvent company and their is no one company director wants to be in this position, it is often the best course of action for all parties. So, how does a Creditors Voluntary Liquidation work and in what way does it affect the business. If a company is unable to meet its financial liabilities. it is classified as an in