Insolvency & Recovery

Being made redundant as part of insolvency can be a hugely distressing time for you and your family, leaving you with many questions. What does this all mean for you and how can you get the money you’re owed?

Our Insolvency & Recovery team discusses the differences between solvent and insolvent liquidation and the role of the liquidator.

The Bounce Back loan (BBL) scheme was introduced to support businesses during the COVID-19 pandemic. We set out some considerations for companies that have taken out Bounce Back loans and subsequently enter liquidation, including whether there is personal liability for directors.

Lee Green looks at HMRC’s recent guidance update about possible joint and several liability notices being issued to directors of insolvent companies that have a tax liability with HMRC. 

A ‘preference’ occurs when a company facing insolvency puts a specific creditor, or group of creditors, into a better position than the other creditors. A director could face personal liability if a preference has been made, which could result in the director being disqualified.

Lee Green looks at the implications of Director Loan Accounts (DLAs) when a company goes into liquidation and emphasises that not all directors are aware of their personal liability if the account is overdrawn.

The Government has announced changes to winding-up petitions, with effect from 1 October 2021 – withdrawing some of the protections currently afforded to businesses. Lee discusses how this impacts businesses facing the threat of insolvency.

On 16 June 2021, the UK Government announced that they are in the process of extending certain insolvency measures. The current company insolvency restrictions on statutory demands and winding-up petitions will remain in force for a further three months until 30 September 2021.

Lee’s blog discusses what may happen if you find yourself dealing with an insolvent estate.

An ideal tool to give businesses time post-COVID-19 to return to profitability before clearing debt? Read more here.