Insolvency

What happens when a company cannot pay its debt?

A company is said to be insolvent when it is unable to pay its debts. Companies deemed as unable to pay its debts where:

  1. it has failed to comply with a statutory demand for a debt of £750 or more;
  2. it has failed to satisfy the enforcement of a judgement debt or
  3. the court is satisfied that the company is unable to pay its debts as they fall due; or
  4. the court is satisfied that the liabilities of the company (including contingent and prospective liabilities) exceed the assets of the company (known as the balance sheet test).

Altion Law can assist you if you believe your company maybe deemed Insolvent. If you would like to have a confidential discussion with a member of our team, if you complete our contact us form, we will call you back at a time that is suitable for you or you can contact us directly on 01908 414990.

Where a company is deemed insolvent, there are different types of insolvency procedures under UK law.

  1. Liquidation
  2. Administration
  3. Administrative Receivership
  4. Company Voluntary Arrangement ("CVA")

If a Winding Up Petition is threatened or brought against your business, you are strongly advised to seek immediate legal advice. Most winding up petitions are brought by HMRC against businesses who cannot pay their PAYE, VAT, Corporation Tax and Wrongdoing Penalties This can be a frightening prospect for any business.

Our advice is don’t give up. At Altion Law we are experienced negotiators who will fight your corner and take the stress out of your situation. Our Litigation lawyers have a proven track record of negotiating mutually agreeable deals with creditors, including HMRC.

business In debt

Why choose us?

  1. Expert Advice
  2. Commercial Understanding
  3. Client Focused

Make a free enquiry

For a free enquiry, call us today on 01908 414990, email us at hello@altion-law.co.uk or complete our free enquiry request for a free, confidential and no obligation discussion and let one of our expert team discuss your situation and the options available to you.