Company Bankruptcy Advice and Services – For Companies
It is important to note that there is no such thing as “company bankruptcy” as bankruptcy is a term which is used for individuals as opposed to Companies. However, Bridge Newland are specialists in the most common insolvency processes which companies use, such as Liquidation and Administration. If you require personal insolvency advice for Bankruptcy then unfortunately we do not currently undertake these works.
Our specialism is companies and we work with company directors and business owners who find themselves under severe pressure from creditors such as banks, suppliers and H M Revenue & Customs and we work closely with them to identify if there are alternative routes that can be followed to avoid company bankruptcy.
As a limited company your business may be liquidated if you are unable to pay your creditors. However, there are specific steps that your creditors need to take before this can happen. In summary, the steps include:
- Statutory demand – your creditors will issue you with a statutory demand to pay them and you will have 21 days to pay the debt or reach an agreement on a payment schedule. If you are unable to pay or make an agreement then your creditors could apply for a winding up order.
- Winding up order – your creditors could apply to court for a winding up petition. If you pay the debt, agree a payment schedule or are able to reach an agreement on a CVA (Company Voluntary Arrangement) then your creditors can withdraw the winding up petition (a CVA is an arrangement to pay your creditors over a fixed period of time). If the debt isn’t paid then the court may issue you with a winding up order which normally involves freezing your company bank account and disallowing you from selling any assets or property.
- Compulsory liquidation – If a liquidator is appointed then they will take control of your company and sell its assets. This means that you are no longer entitled to represent the business and in extreme cases you may be banned from being a director for a number of years.
What is the equivalent to bankruptcy for Companies?
Whilst the above may seem punitive there are many options available to you that Bridge Newland can explain in detail to you. We recognise that any company insolvency can be an extremely stressful time for all concerned so we are here to guide you through the maze and show you that there is light at the end of the tunnel. Please see below the links to the main processes used or services we offer which deal with insolvent companies:
Alternatively, please feel free to give us a call on our free phone number 0800 612 6197 where one of our qualified team will be more than happy to give you all the advice you need.