Help for Directors

All businesses face the occasional financial crisis but when they become a critical problem you need to know exactly where you stand. In our help for directors section, you will find specific information for answering your questions around if you are insolvent, what you need to do if you are and how it will affect you.

Creditors Voluntary Liquidation

What is known as Creditors Voluntary Liquidation is the process that most businesses must go through if they are insolvent. It can be a difficult time for everyone involved, so we have created this special section of our site to give you the important facts about CVLs in a clear and down to earth way so you can see where you stand.

Members Voluntary Liquidation

This is when your company is still solvent, but you (and your fellow directors) decide it is time to call it a day and retire or move on to the next stage of your lives.  With an MVL, you will release the assets and use these funds to pay off the creditors before returning the remaining funds to the shareholders.

Insolvent Deceased Estates

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Insolvent Deceased Estates

People’s lives have become more complex and so have their financial affairs. The number of insolvent estates has also increased over the last few years because of these complexities. Therefore, it is important to spot an insolvent estate asap. If the executor or administrator dealing the with estate doesn’t they could end up personally liable for their actions.

An insolvent estate is where the assets of the estate are not sufficient to cover the money owed to creditors. Some of the debt may be covered by an insurance policy, for example, a life policy tied to a mortgage. Others may be joint debts, such as a joint credit card.

In effect the rules of bankruptcy apply to an insolvent deceased estate with some exceptions, for example, reasonable funeral costs and testamentary expense are paid before preferential and unsecured creditors but after secured creditors.

Clearly, this is a very complex area in what will already be a very difficult time and therefore expert advice is required. Our insolvency practitioner not only has many years of dealing with this area but has also recently passed the SWAT certificate in Probate and Estate Administration so understand both areas in detail. 

 

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Find out more about how we can support you through the difficult and stressful process of personal bankruptcy. We’re here to help with clear, straightforward, empathetic support.

Call us on 0116 2325117 (Leicester), 01926 671891 (Warwick), 02476 017639 (Coventry), 01604 263179 (Northampton) or email us on info@smartbusinessrecovery.co.uk