Corporate Insolvency

It is not too late

Even if the demand letters have started to land on the door mat, there is still time to act!

What is Corporate Insolvency?

Corporate Insolvency is when a Limited Liability Partnership (”LLP”) or Limited Company can no longer continue its business in its current position/form; and a solution must be considered which will either bring the LLP or Limited Company to an end, or, in the case of a viable business, how that business may, under certain circumstances, continue.

What are the solutions?

The solutions that are available depend on the financial circumstances of the business.

Each business is different and brings with it entirely unique challenges. The reality is that some businesses will have a future, in their current guise, because they are viable, however, some will not and perhaps require some ‘out of the box’ thinking to ensure survival. We at J3 Debt Solutions will always give you an honest assessment, whether that is news you want to hear or not. The key is in taking the step to seek out help early. Recognise the warning signs. (Link to warning signs).

Directors of Companies should also be mindful of personal guarantees (or PGs). If you are a Director of a Limited Company or a Member of an LLP, and you have personally guaranteed business debts, supplies or borrowings, you must exercise caution not to overextend the business as this will then impact upon your own finances. If the business defaults in any way on the debt to which your PG relates, your PG can be called up and you risk facing action being taken against you personally.

Below is a brief summary of the Corporate Insolvency options which exist in today’s market. Each serve a purpose and can be used to get the best out of a variety of different situations. If, however, you think these options could be avoided, see our Business Recovery & Turnaround page.

Sole Trader & Small Businesses

In the current climate, many smaller businesses are being squeezed on margins, continue to have high overheads and struggle to pay their creditors on time. Often is the case that a choice has to be made whether to pay what is due to HMRC or to take a wage for all your hard work, the latter, in many cases, taking priority.

If you are experiencing debt problems or find the running of your business a struggle day to day, contact one of our team to discuss what options you have. We offer non-judgmental, impartial advice and we will always give you our honest assessment.

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Get in touch today

Our friendly team is available whenever you need us. We can talk about your options and provide help and support whatever your situation.

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