Corporate and business insolvency can be a complex and highly specialised area of the law. As such, it is vital that any stakeholder involved in the process receives reliable and authoritative advice from a trusted insolvency solicitor to help resolve the various practical, legal and financial issues.
Simply.Law is a digital platform designed to help today’s legal services consumer find the right lawyer for their needs.
If you need help with insolvency issues our member lawyers will have the niche experience that you require and Simply.Law will help you find the lawyer best suited to your particular legal circumstance.
Defining insolvency
Under UK law, a company is deemed to be insolvent if it is unable to pay its debts. There are two tests to help determine this capability. They are as follows:
- The cash-flow test – is the company unable to pay its debts now or in the future?
- The balance sheet test – does the value of the company’s assets amount to less that its liabilities?
A business can be considered insolvent if 1) a creditor is owed more than £750, 2) the company has been served with a formal demand for the debt, and 3) the debt has remained unpaid for three weeks.
Insolvency may also be deemed to be the case if a judgement or other court order has not been satisfied.
Types of insolvency process
In the UK there are six types of business insolvency. They are as follows:
- Administration
- Administrative Receivership
- Compulsory Liquidation
- Company Voluntary Arrangement
- Creditors’ Voluntary Liquidation
- Members’ Voluntary Liquidation
However, these six types of insolvency are different and each has distinct characteristics. For example, some will help a business stabilise and hopefully recover its financial viability, while others – for example, liquidation – are terminal and will end the trading life of a business.
Simply.Law’s business insolvency solicitors
Skilful management of a business’s cashflow and liabilities is crucial to its viability and success. Simply.Law’s business insolvency solicitors provide confidence by offering clear and concise legal advice to help you meet your objectives.
Search through our member profiles today to find the specialist who can help you secure a more confident future.
Alternatively, to let us pair you with the right business insolvency solicitor for your needs, please use the Simply.Law Match function. By giving us a few details we can search through our list of members to find the best match of legal expertise for your case.
