BUSINESS DEBT FAQs

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Can you help with Company debts?

Yes. We are specialists at providing debt advice to the Directors of limited companies. There are a wide range of debt solutions available to limited companies. Our aim is make sure you understand all the options so that you are better prepared to make a decision.

How much does a liquidation cost?

A Company Voluntary Liquidation (CVL) allows the company to be closed in a managed way, avoiding the stress and risk associated with a compulsory liquidation. Typically, the cost will depend on the number of creditors involved, staff numbers, assets etc but in general the cost will range between £3,000-£5,000 plus VAT and disbursements.

If you at quickly and before the business runs out of cash and assets, then the cost of the liquidation can be funded from the Company assets.

It is important to understand that every CVL follows the same process. This involves stringent regulation and must be conducted by an Insolvency Practitioner. There are certain costs that are payable, such as statutory advertising, insurance, agent fees (e.g. valuers), convening of creditor meetings and reporting costs.

Can I buy back the business or assets?

The Liquidator has a duty to obtain the best possible price for the company assets. If selling assets to the former Director, a professional valuation would be needed to show that the price offered is fair. The Liquidator must sell the assets for the highest offer received, so if your offer is the highest, then the assets can usually be sold to you.

I have a personal guarantee. How will this affect me?

If you have given a Personal Guarantee for any business debts, then firstly the creditor will look to be repaid from the assets of the business, through the Liquidation. If the business assets are insufficient to repay the debt in full then the creditor (usually the bank) can take action against you personally.

Am I personally liable for the business debts?

Generally, no. The Company is a separate legal entity and holds contracts with people or companies in its own right. Unless a director has acted outside of his authority, or has given personal guarantees, that director will not as a rule be liable for the debts of the Company.

I have a CCJ. What should I do?

Its important that you take prompt action to prevent the CCJ being enforced by Bailiffs. Call us straight away to get immediate advice.

Do you provide face to face advice?

We are always happy to meet with you face to face. We believe that you should obtain advice in the way that best works for you.

Do you offer a Free Consultation?

Yes. We always offer a Free Consultation. We will spend the time to go through your circumstances and give you a specific recommendation.

If you decide to move forward with our recommendation, we will confirm any costs involved in writing, before accepting your instructions. If there are sufficient assets in the business it will be possible to recover our fees from the business, at no cost to the Directors personally.

Help with Bailiffs?

If bailiffs have been instructed it is important that you act quickly. In most cases, we can speak directly with the bailiff. Once they are aware of your circumstances, they may allow us extra time so you can decide on the best course of action for your business.

Do I need an appointment?

No, you do not need an appointment. Simply call us on 01823 216156 and we will be happy to assist. Alternatively you can use the contact form to the right of this page.

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