Articles Category: Bankruptcy - ArticlesManagement.Com

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I have received a Winding Up Petition - What actions can I take? By : Derek G Cooper More recently, creditors have started to use winding up petitions specifically as debt collection tools. Rather than issuing a county court judgement which could then be ignored, creditors are choosing to issue the winding up petition because of the immediate pressure that this puts on the company to pay the outstanding debt. Given these serious implications, as a company director, it is very important for you to know what actions you can take. Business Phoenixing - Is a Pre-Pack a practical way to avoid company failure? By : Derek G Cooper With the continuing economic downturn, increasing numbers of businesses are finding it difficult to continue trading. In this economic climate Phoenixing or Pre-Pack Administration would enable many businesses to continue to trade without the burden of servicing legacy debts. 4 options to solve debt problems for self employed By : Derek G Cooper For self employed or sole traders it is quite usual to help your business with personal borrowing. This is great while the business is going well. However in poor economic conditions if the business struggles this can lead to individuals with large personal debt problems which they cannot afford. Here are 4 options to help resolve this situation. Creditors now more accepting of Company Voluntary Arrangement (CVA) By : Derek G Cooper The outdoor and leisure clothing retailer Blacks is planning to resolve its financial difficulties by agreeing a Company Voluntary Arrangement (CVA) with its creditors. Yet more evidence that creditors are starting to understand the value of CVAs for restructuring struggling companies. Resolving directors personal debt problems with Debt Management By : Derek G Cooper The directors of small businesses often build up personal debts because they have borrowed money in their own name to invest into the business. If the business subsequently fails, the director will be responsible for this debt and often find themselves struggling with personal debt which they cannot afford to repay. Using Individual Voluntary Arrangement (IVA) to solve Sole Traders Personal Financial Difficulties By : Derek G Cooper When a company gets into financial trouble there are a number of business rescue solutions available. The problem for directors is that corporate rescue solutions do nothing to resolve any debts taken on by them personally. One answer which should be considered is an IVA (individual voluntary arrangement). Can I ignore a statutory demand By : Derek G Cooper On receiving a statutory demand you have three weeks to respond. After that the courts will assume your company is insolvent and take steps to wind it up. Here are the four options that you have. Why critics of Phoenixing or Pre-pack liquidation are wrong By : Derek G Cooper Pre Pack liquidation or Phoenixing has become the subject of much debate over the past 12 months. It is my view that these arguments against the pre pack process are fundamentally flawed. Simple steps to a pre-pack or phoenix By : Derek G Cooper You may be considering simply cutting your losses and closing your business. However the business idea and certain elements of the current business may still be viable. A pre pack liquidation (commonly known as the Phoenix process) allows a new company to be formed using the viable parts. Follow this process below. How to do a Company Voluntary Arrangement By : Derek G Cooper If your company is under serious pressure, but if the historic debt was removed, the business remains viable, then a Company Voluntary Arrangement (CVA) could be the answer. There are a number of steps you need to follow. Liquidation - how do I close my company? By : Derek G Cooper Looking to close down your company? Here is a guide to the liquidation process you will need to go through. Business Refinancing used to prevent Company Bankruptcy (Liquidation) By : Derek G Cooper In the midst of an economic downturn, many companies find themselves at risk of failure because they do not have enough cash to maintain their day to day business activities. High Street banks are currently extremely reluctant to lend because of their huge bad debt risks. In the face of this there are alternative funding options which should be considered which are collectively known as business re-financing. Use a Pre-Pack or Phoenix to avoid Company Bankruptcy (Liquidation) By : Derek G Cooper If your company is no longer financially viable in its current form, you may be looking at closing (or liquidating) the business. If you believe the business idea is a good one then an option is to instead look at a Pre Pack Liquidation or Phoenix. Avoid Company Bankruptcy (Liquidation) using Company Voluntary Arrangement (CVA) By : Derek G Cooper Before deciding your company is bankrupt, it is worth considering whether there may be a possibility of turning around the business. A possible option is a Company Voluntary Arrangement (CVA). Winding Up Petition now often used as Debt Collecting Tools By : Derek G Cooper Historically, winding up was initiated by a creditor because they believed that a company was not able to pay its debts. Over the past 12 to 18 months I have seen increasing numbers of creditors using winding up petitions to force creditors to pay outstanding debt. Cash Flow - A strategy for debt recovery in difficult recessionary times By : Derek G Cooper One of the main reasons for business failure during recession is late or non payment of debts. If you are struggling to persuade your customers to pay, there are a number of actions you can take to get them to part with their cash. Deferring company tax is covering up a ticking time bomb of insolvency By : Derek G Cooper On the face of it, the corporation tax deferment scheme sounds an extremely good idea. However, I believe it is important to question whether this policy is simply deferring an inevitable wave of company failures. How to ensure a successful Phoenix or Pre-Pack By : Derek G Cooper There is no guarantee of a success when undertaking a Phoenix or Pre-pack. However, considering the areas in this article will certainly help to avoid some of the pitfalls of the pre pack process. Company Voluntary Arrangement business - how can we collect debt? By : Derek G Cooper With the challenging trading conditions in which many companies are experiencing, the use of procedures such as company voluntary arrangements is likely to become increasingly common. This is not good news for creditors who will find themselves with unpaid accounts. I have a Winding Up Petition - What Does this Mean? By : Derek G Cooper If you receive a Winding up Petition, this could have very serious consequences for both you and your business. It is therefore very important to understand what a Winding up Petition is and the implications of receiving one. Company Liquidation need not be the end of life By : Derek G Cooper If a company is struggling partly due to historic debts, the directors may decide the best action is to close the business. However this need not be the end of the road as there is nothing to stop a director of the original business setting up a new company and making a bid to the liquidator for any or all of the assets which can then be used in the new enterprise.