Am I Insolvent?
AM I INSOLVENT?
If you’re Company is unable to pay its debts on time (e.g. tax debts, VAT or PAYE) or your assets are less than your liabilities (debts) then it is insolvent.
The Insolvency Act (Section 123) describes insolvency as the inability to pay debts as they fall due; Liabilities are more than assets; Unsatisfied CCJ or unpaid statutory demands over £750.
LMS can provide general insolvency guidance as well as information on Insolvent Trading or Trading whilst Insolvent.
How can LMS help?
We specialise in helping companies facing insolvency. Here are some of the ways we can help:
⦁ Explain all your options
⦁ Help you find the best solution for your situation
⦁ Guide you through the process in the most beneficial way
⦁ Save your company if required
⦁ Reduce and write-off debts
Is insolvency the same as liquidation/bankruptcy/IVA/CVA/administration?
Being Insolvent means you are unable to pay your debts or your assets are less than your liabilities (debts).
The following terms are specific procedures in Insolvency:
Company Voluntary Arrangement – CVA
Individual Voluntary Arrangement – IVA
Administration including Pre-pack Administration
Creditors Voluntary Liquidation – CVL.
These are explained in the Insolvency Act as procedures for dealing with your insolvency.
Whichever position you find your company in, LMS we can guide you through the process from start to end.
What does insolvency or being insolvent really mean?
It means that your creditors can put your company into compulsory liquidation with a winding up petition.
It also means your business could face problems in the future should you be required to carry out asset transfers. This could also result in you becoming personally liable for debts of your company or specific transactions you enter into.