What if it all goes "pear shaped"........

None of us go into business to fail – however it does happen.


And certainly in the last 18 months the number of individual insolvencies and company liquidations has increased.

If it happens to you then seek advice from a professional in the area of Insolvency. They will give you all the options and help you through the process. Even when you feel there may be no solution there usually is!!!

There are a number of options available....

For individuals

• Bankruptcy – this is a formal act of insolvency. There are certain rules that need to be followed but they allow you to move on and start again

• IVA – Individual Voluntary Arrangement this an arrangement with your personal creditors that can allow you to pay off the monies over a period of time

• Business IVA – as above but for the sole trader or partnership

And for companies

• Administration – this protects insolvent companies from their creditors whilst a restructuring plan is completed (popular with football clubs!!)

• Company Voluntary arrangements – this is the company version of the Individual IVA mentioned above

• Liquidation – this occurs where the money owed exceeds the money due and the releasable value of the assets. The directors make the decision to liquidate. (But directors need to be very careful that they do not trade beyond the point when the company should have been liquidated)

There are options – so seek advice from a Licensed Insolvency Practioner.

Better still continuously communicate with your accountant and other advisors so pre-emptive action can be taken before it gets too late.......