A guide, not advice. This explains how things generally work. A licensed insolvency practitioner will tell you what applies to your company or to you.
When to Seek Insolvency Advice
Many directors delay seeking insolvency advice - hoping things will improve, reluctant to face the situation, or worried about the cost. This is almost always a mistake. The single most important factor in any insolvency outcome is how early you take advice.
The Cost of Delay
Delay narrows your options and increases your risks:
- Rescue options disappear - a CVA or administration may be possible early but impossible once creditors lose patience
- Personal liability grows - continuing to trade when you know there is no realistic prospect of recovery risks a wrongful trading claim
- Creditor action escalates - a late supplier letter becomes a County Court Judgment, then a winding-up petition
- Returns to creditors fall - assets are eroded and the eventual outcome is worse for everyone
When You Should Seek Advice
Seek advice if any of the following are true:
- You are struggling to pay VAT, PAYE, or Corporation Tax on time
- You are robbing Peter to pay Paul - using one creditor's payment to fund another
- You have received a statutory demand or a winding-up petition
- Your bank has reduced or withdrawn facilities
- You cannot make payroll this month
- You are personally funding the company's losses
- You have received a County Court Judgment
- You are unsure whether the company is solvent or insolvent
What Good Advice Looks Like
A licensed insolvency practitioner will:
- Assess your situation honestly and confidentially
- Tell you whether the company is insolvent
- Explain your options - rescue, restructuring, or closure
- Explain the risks to you as a director
- Give you a clear, written estimate of any costs
- Never pressure you to act
It's Free and Confidential
The initial conversation with a licensed practitioner is free and completely confidential. There is no obligation to proceed. The only thing you risk by calling is finding out your options.
Speak to a Licensed IP
If any of the warning signs above sound familiar, call our Manchester team today. The earlier you speak to us, the more we can help.