Contact us today on 01484 821 500

Corporate Insolvency Solicitors

Ramsdens Solicitors deals with all aspects of corporate insolvency, including voluntary arrangements, administrations and liquidations of companies and partnerships.

If you are the director of a company and believe that the solvency of your company is in doubt, it is important to take steps to minimise losses to creditors, rather than maximising returns to shareholders. We can offer you the legal advice and support you need to do this effectively.

Ramsdens is ranked in the prestigious Legal 500. As a result, we are well placed to assist you throughout this complicated process.

To speak to our corporate insolvency solicitors, call us today on 01484 821 500 or fill out our online enquiry form and a member of the team will be in touch at a convenient time for you.

How we can help

Our experienced and knowledgeable team have expertise in the following services:

  • Turnaround and recovery
  • Investigations and asset realisations
  • Advice for directors
  • Creditor recoveries
  • Property and tenant insolvency

What is corporate insolvency?

There is no statutory definition of the term ‘insolvent’, however, it is categorised as being unable to pay the money owed - by a person or company - on time.

The courts are likely to determine that a company is insolvent by referring to the relevant provisions of the Insolvency Act 1986, which relates to circumstances by which:

  • The value of a company’s liabilities exceed its assets (known as balance sheet insolvency), or
  • A company is unable to pay its debts as and when they are due (known as cash flow insolvency)

How to spot when a company is insolvent

It is the responsibility of company directors to monitor financial management information while remaining alert to signs of cash flow issues. Common signs of insolvency include:

  • Trade creditors being asked to wait for payment
  • Funds earmarked to pay PAYE, NIC, VAT or corporation tax are used for other purposes
  • Direct debit payments and cheques are returned to the bank
  • The landlord is chasing rental payments
  • Receipt of statutory demands or winding-up petitions

What to do if a company is insolvent?

If directors believe that a company may be, or is about to become, insolvent, they should immediately seek advice from a company insolvency solicitor, an accountant or an insolvency practitioner.

It is the responsibility of the director to consider the formal insolvency process that is available to the company in order to protect the creditors.

What happens if the right action is not taken?

If directors do not act appropriately, they could be made personally liable for the debts of a business. This is usually the case if the directors are found liable for the following:

  • Fraudulent trading
  • Wrongful trading
  • Breach of duty

In the event that the directors could not personally meet these debts, they could be pushed into bankruptcy. Disqualification proceedings may also begin and there may be a risk of being prevented from acting as a company director.

Why choose us?

Our quality of service has led to us developing an impressive reputation in this area, in part due to our ability to offer a more personal and effective service than much larger legal practices.

Our clients include insolvency practitioners from both national and independent firms across the region. We also deal with businesses, their shareholders and creditors, directors and private individuals. We also have strong relationships with many banks and asset-based lenders across Yorkshire.

Read our awards and accreditations.

GET IN TOUCH

The insolvency process is a complex one and by contacting Ramsdens' Business Recovery and Insolvency team on 01484 821 500 at the earliest opportunity, means you'll be on the road to recovery for you and your business.