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.
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