ICS can provide specialist advice for your business

Directors of Limited Companies

Established over 16 years Ideal Corporate Solutions, ICS, licensed Insolvency Practitioners have significant experience in assisting Directors of limited companies that are experiencing financial difficulties. It is vital that Directors take independent specialist advice as soon as possible as this gives the company the best possible chance to survive.

If you speak to us as soon as you think there may be a problem we can help by mitigating as much as possible the Directors risks of personal liability and/or disqualification proceedings. Our experience and close relationships with a large network of Accountants and other Professional intermediaries means we can further support Directors in a number of ways, including:

Established over 16 years Ideal Corporate Solutions, ICS, licensed Insolvency Practitioners have significant experience in assisting Directors of limited companies that are experiencing financial difficulties. It is vital that Directors take independent specialist advice as soon as possible as this gives the company the best possible chance to survive.

If you speak to us as soon as you think there may be a problem we can help by mitigating as much as possible the Directors risks of personal liability and/or disqualification proceedings. Our experience and close relationships with a large network of Accountants and other Professional intermediaries means we can further support Directors in a number of ways, including:

  • Raising additional appropriate sources of funding, preparing evidence to arrange Time to Pay agreements with HMRC
  • Assisting with the recovery and survival of the business through a more formal route such as Administration or Company Voluntary Arrangement, CVA.
  • If a business has ceased to trade or is no longer viable then we can guide Directors through the process of either Members Voluntary Liquidation MVL or Creditors Voluntary Liquidation CVL depending on the Company’s ability to pay its debts in full.
  • If the company is unregistered, the options available differ from normal limited companies as do the responsibilities and liabilities of their officers, ICS can provide specialist help.

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Partner – Partnerships

If a partnership gets into financial difficulties the solutions available will depend on the type of partnership the business trades within. The biggest difference between the types of Partnership is the extent to which the individual partners are liable for the Partnership debts. The types of partnership are:

Ordinary Trading Partnerships:

  • Two or more persons trade together in business.
  • Partners are jointly and severally liable for the partnership debts irrespective of whether the partners are equal or not.

If such a business gets into difficulty it is imperative that the partners take professional advice urgently both to save the business and to mitigate the risk to themselves personally. The options that are available include:

If a partnership gets into financial difficulties the solutions available will depend on the type of partnership the business trades within. The biggest difference between the types of Partnership is the extent to which the individual partners are liable for the Partnership debts. The types of partnership are:

Ordinary Trading Partnerships:

  • Two or more persons trade together in business.
  • Partners are jointly and severally liable for the partnership debts irrespective of whether the partners are equal or not.

If such a business gets into difficulty it is imperative that the partners take professional advice urgently both to save the business and to mitigate the risk to themselves personally. The options that are available include:

 

  • Raising additional finance.
  • Applying for the protection of Administration.
  • Coming to an arrangement with creditors through either a Time to Pay Arrangement with HMRC or a Partnership Voluntary Arrangement.

If the above solutions aren’t achievable and the partnership is insolvent, then it can only be formally wound up through the court following a petition for Compulsory Liquidation. The petition can be issued by several parties including a creditor and the members themselves. It is not uncommon though for creditors to petition to bankrupt the partners personally at the same time or instead of winding up the partnership, so professional advice as early as possible is imperative.

Limited Liability Partnerships (LLP):

Often formed by professional services firms, partners in an LLP are only liable for the level of investment they put into the business and not partnership business debts, however they are liable for their personal profits from the business.

If a limited liability partnership falls into financial difficulty the general partnership options are available to them but the following may also be considered if better suited:

  • Creditors Voluntary Liquidation.
  • Members Voluntary Liquidation.
  • Voluntary Dissolution.

To understand the options available to partnerships please contact the ICS team for help and confidential advice.

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Self Employed / Sole Trader

Running your business as a sole trader or proprietorship allows decisions to be made a lot quicker, however it also means that you are completely responsible financially as your personal and business assets are not separate. So, any debts run up by your business are solely your responsibility, and if your business becomes insolvent you may be facing personal bankruptcy.

ICS have specialists that help self-employed people with debt issues and can provide expert debt and insolvency advice tailored to your specific needs.

Insolvency and debt can arise for many reasons including:

Running your business as a sole trader or proprietorship allows decisions to be made a lot quicker, however it also means that you are completely responsible financially as your personal and business assets are not separate. So, any debts run up by your business are solely your responsibility, and if your business becomes insolvent you may be facing personal bankruptcy.

ICS have specialists that help self-employed people with debt issues and can provide expert debt and insolvency advice tailored to your specific needs.

Insolvency and debt can arise for many reasons including:

  • Losing a major customer.
  • Reduction in the finance available from your bank.
  • Tax arrears with HMRC.
  • Overtrading and rapid growth.
  • Fraud or theft within your business.

If you are in financial difficulty your individual circumstances will determine which is the most appropriate solution for you, your business and your family; a solution could be:

  • Raising additional finance against your personal assets through secured loans.
  • If a major creditor is HMRC we may be able to agree a structured repayment proposal with HMRC for you; this is called a ‘Time to Pay Arrangement’.

If there are a number of creditors and your business is viable or you have a permanent job, then maybe an Individual Voluntary Arrangement (IVA) is suitable. This is a legally binding contract with your creditors where you pay into a fund regularly allowing you to continue trading or working. The funds are collected and distributed by the Supervisor of the IVA who must be a licensed Insolvency Practitioner. As you only pay into the fund what you can afford it is common for creditors to allow a proportion of their debt to be written off so long as the terms of the IVA are adhered to.

For help understanding the best options for your business please contact ICS.

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