A company is deemed insolvent if it has been shown that it has an inability to pay off its debts. This has to relate to both its cash flow and its assets. There are many different options available once this has occurred, but the two main courses of action to avoid liquidation are:
- Company Voluntary Arrangements
The law impinges on companies and their directors in different ways once insolvency has occurred, and it is key that you understand how. Take a look at the following pages which explain the two scenarios in more detail, as well as what your options are. We also have a section dedicated to Voluntary Arrangements, if you return one step.
Often, if your company is insolvent you will also need legal advice on other aspects of commercial law. You can find this in our Commercial section.
Do you want expert legal advice on matters concerning commercial law? Call us on 0800 1777 162 and let our dedicated case handlers match you to the best solicitor for your needs.
- Can my company's name be reused after bankruptcy?
- Company voluntary arrangements
- Compulsory liquidation
- Creditors' Voluntary Liquidation
- Distribution of assets in insolvency
- How to use a liquidation lawyer
- Members Voluntary Liquidation
- What is an unsecured creditor?