Commercial Insolvency
There is a tragic inevitability that during 2009 many businesses will experience financial difficulties. Often these impact not only on the trading position of the business itself but also on the lives of the business owners.
At Banner Jones, we have the benefit of many years experience of dealing with business turnaround and insolvency. This can mean that we can look for the most effective rescue package for the business to enable it to go forwards either to be sold or run by a newly invigorated owner.
The solutions we are able to offer are available to both individuals trading in person as well as limited companies.
We can offer solutions from full scale insolvencies including company voluntary arrangements, partnership and individual voluntary arrangements down to simple debt negotiation and dispute resolution.
Our solutions include the following:-
1. Limited Companies
Company Voluntary Arrangements
This is a process where a proposal is put to the company’s creditors and if 75% of the value of those who vote are in favour of the proposal then all of the company’s unsecured debt is rolled into the arrangement. Normally the company will then pay a monthly amount for a period of 5 years to satisfy the debt in full. More often than not the total amount paid is less than the total amount owed. This can be a very effective solution and avoids the company going into any form of liquidation. Therefore it continues as a going concern and its trading position need not be effected. Often the voluntary arrangement includes the appointment of a company Administrator and therefore often people associate this process with Administration.
Liquidationn
Where a company has passed the point of no return it is often better to place the company into liquidation and bring it to an end. Often the company will have a business and assets which can be sold to a new company and therefore a “Phoenix” new company can purchase the business and assets and trade free of the old debt. This is a process which is frequently used and entirely in accordance with the Insolvency Act 1986.
Company Dispute Resolution
Often the company is in debt or in trouble due to disputed debts. Therefore Your Business can work in association with its panel of solicitors to challenge the claim which is made in relation to the outstanding debts.
2. Individual Voluntary Arrangements
Partnership/Individual Voluntary Arrangements
Where debt is held personally rather than in a limited company name it can be more troublesome. This is principally for the reason that the personal assets of the business owner, including their home, can be under threat.
A partnership voluntary arrangement is used where there are more than one business owners trading in partnership and an individual voluntary arrangement is used for one person alone. Equally a series of individual voluntary arrangements can be used and this can often be the case in relation to either business partners or other partners.
In the same way as a company voluntary arrangement 75% of the value of those who vote need to vote in favour of any proposal. Most proposals again involve monthly payments over a 5 year period after which time the debt is discharged in full. It is not normal to use this solution if the debts are for less than £15,000. It is a useful tool as it avoids bankruptcy and protects personal assets.
Telephone 01246 560560
