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.

Dealing with CCJs

Dealing with CCJs

County Court Judgements (CCJs)

If you are struggling to pay your outstanding business debts, creditors, including HMRC, will commonly threaten to use the court system to obtain a County Court Judgement (CCJ) in an attempt to obtain payment. Partly this is because it is a relatively easy and often very effective way of clearing a debt. Despite CCJs being fairly commonplace when a business is having financial issues, we often find people asking, ‘what is a CCJ’ and ‘What will it mean to my business'? Naturally, they are also worried about what happens if they cannot pay a CCJ. It is probably a good idea for all directors to understand the process of a county court judgement, how it may affect your business and what you can do about them.

 

The process

Any creditors who are owed money can apply for a CCJ. The process is straightforward and can be done online and at a low cost. For example, for a £5,000 debt, the online fee is currently as little as £185.

The claim is issued, and you will receive this from the court directly. You will be given 14 days to reply; whether that is to dispute the debt, make an offer of payment, or simply pay the debt.

If a reply is not received the creditor can take the following action:

How can a CCJ affect your business?

If a creditor has a CCJ it will have the following implications.

What can I do?

Firstly you need to act quickly because, as you can see, the effects on your business are serious. If you have a creditor who is threatening a CCJ under no circumstances ignore it.

Some options are:

CCJs are often an indication of a wider issue and need to be dealt with appropriately. We are happy to discuss this with you further and offer a free 20 minute initial call to talk through your problems.

 

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Find out more about our insolvency, liquidation or recovery service.  Learn how we can support you with clear, straightforward and empathetic guidance and support.

Call us on 0116 2967507 (Leicester), 01926 969000 (Warwick), 02476 0179639 (Coventry) or 01604 263179 (Northampton), or email us on info@smartbusinessrecovery.co.uk