This process may apply to individuals, partnerships or limited companies who are experiencing financial difficulties. These arrangements are formal repayment plans with creditors, suppliers, credit cards companies etc. These repayment plans must be accepted by 75% or more of creditors in value (£).

Each scenario is different and repayment methods can include a one off lump sum, sale of property or other assets, or monthly contributions over a period of time. A combination of some or all of these methods can be used to contribute to paying creditors.

We can help you assess whether or not a voluntary arrangement is the right route for you to take.

If this is the case, we can work with you to put the relevant plan or proposal together and assist you in obtaining creditors acceptance.

This process may apply to limited companies or limited liability partnerships.

There are three different types of liquidation:

A compulsory liquidation is where a creditor forces a liquidation by taking legal action through the Courts for non-payment of monies due to them. The Official Receiver will initially be appointed liquidator in this scenario and the timing of the liquidation is in the hands of the creditor who is taking action.

A creditor's voluntary liquidation is a process that is instigated by the directors or partners because they feel they are no longer in a position to pay creditors as and when they fall due. The directors or partners choice of insolvency practitioner may be appointed Liquidator if shareholders and creditor's agree. The timing of the liquidation is in the hands of the directors or partners.

A members voluntary liquidation is a process that is initiated by the directors or partners because the business has reached the end of its useful life and there are sufficient assets to enable repayment of all creditors in full within 12 months with surplus funds being returned to shareholders. The directors or partners choice of insolvency practitioner may be appointed Liquidator if shareholders agree. Again, the timing of the liquidation is in the hands of the directors and shareholders.

In all of the liquidation processes outlined above, the role of the liquidator includes realising all of the assets available in the most effective way (i.e. turn assets into cash), dealing with creditor's claims and queries then paying any surplus funds (after costs) to creditors and shareholders in the order outlined by law.

In addition, in these scenarios there is an opportunity for existing directors or partners to buy the assets out of liquidation but this is subject to ensuring market value is achieved and certain restrictions.

We can help by sitting down with you to ascertain if a liquidation is the most appropriate route for you and to talk you through the process prior to making any decision.

This process may apply to limited companies or limited liability partnerships.

An Administration normally involves the sale of all or part of a business that is suffering financial difficulties on a going concern basis (i.e. where the business continues to trade in the future).

There are two different types of Administrations:

A pre-pack Administration is a process where the marketing of a business takes place prior to the appointment of an Administrator on a confidential basis in order to protect the goodwill. A sale is agreed prior to Administration and concluded shortly after the appointment of an Administrator.

A trading Administration is a process where an Administrator is appointed to take over the trading of the business whilst simultaneously carrying out a sales process. The Administrator must ensure the business is traded profitably whilst a buyer is sought. A sale is both agreed and concluded during the Administration by an Administrator.

Administration can be a complex procedure and there are many different methods of appointing an Administrator. This procedure can be initiated by directors, partners, shareholders, secured creditors

(a creditor with a debenture e.g. Bank, Invoice Finance provider etc.) and unsecured creditors (e.g. suppliers). In addition, there is an opportunity for existing directors or partners to acquire the assets through an Administration but this is subject to a transparent sales process being undertaken and certain restrictions.

We can help by meeting with you to discuss whether or not Administration is appropriate and if so explain the various routes to appointing an Administrator and how the process would work in your scenario.

This is the process which can be most worrying as it relates to individuals who are unable to pay their debts and includes personal assets and liabilities.

There are two ways in which an individual can be made Bankrupt, both through the Courts.

A creditor led Bankruptcy is where a creditor may force an individual into Bankruptcy by taking legal action through the Courts for non-payment of monies due to them. The Official Receiver will initially be appointed Trustee in this scenario and the timing of the bankruptcy is in the hands of the creditor who is taking action.

An individual may apply to Court to petition bankrupt for their own bankruptcy i.e. make themselves bankrupt. This involves completing a number of forms for the Court and making an appointment at the Court for the bankruptcy petition to be heard. The Official Receiver will initially be appointed Trustee once again and the timing of the liquidation is in the hands of the individual who is petitioning for their own bankruptcy subject to Courts availability.

There are a number of restrictions imposed on individuals when made bankrupt and as personal assets are involved we would recommend a meeting to discuss your position to provide you will all the necessary information and options to allow you to make an informed decision.

A formal insolvency option may not necessarily be the most appropriate route to take.

If so, we have a network of trusted accountants, solicitors, asset based lenders, debt collection agents etc. who we are able to refer you to if the best solution for you is refinancing, restructuring, informal arrangements with creditors, for example, rather than a formal insolvency process.