Duncan Lewis insolvency solicitors are able to advise individuals, LLPs, partnerships and sole traders on insolvency proceedings under the Insolvency Act 1986.
Under the Insolvency Act, insolvency proceedings are defined as:
Insolvency proceedings apply to individuals, partnerships and companies unable to pay their debts. However, the court has to be satisfied that this is the case before a company can be wound up under the Insolvency Act or the Insolvent Partnerships Order 1994 – or a person can be declared bankrupt by the court.
In the case of companies or partnerships, the court may accept a company is insolvent if the value of its assets is less than its liabilities – including any future liabilities or contingency assets. Once a limited company is unable to pay a debt of £750, a creditor might then apply for an insolvency petition.
In the case of individuals, if a sole practitioner or individual appears to have no reasonable prospect paying their debts over £5,000, a creditor might present an insolvency petition.
Insolvency is a lengthy process and Duncan Lewis insolvency solicitors are able to advise at any stage of insolvency, including before a company is liquidated, or at the start of an investigation by the Insolvency Service – or if a creditor’s petition has been presented to the court.
Insolvency proceedings not only involve cash and assets, but also property and any other assets. In the case of companies, professional indemnity cover will determine the liability of directors, partners and members in insolvency proceedings. Once a creditor has presented an insolvency petition, charges may be applied to property at the Land Registry and insolvency proceedings commence.
Duncan Lewis can advise on how best to deal with creditors to tackle outstanding debts – and the options available to companies and sole traders or individuals, including:
Once a creditor has petitioned for insolvency proceedings, it is vital to seek expert legal advice form Duncan Lewis as soon as possible. Our specialist insolvency solicitors can act swiftly to protect a client’s interests and advise on the best course of action to protect assets and property – as well as advising on claw-back provisions for LLPs under the Limited Liability Partnerships Regulations 2001.
Debt, bankruptcy and insolvency can affect future employment, credit and the ability to trade – call Duncan Lewis Insolvency Solicitors on 0333 772 0409 for expert legal advice on debt management and insolvency proceedings.