My Insolvency

"Stacey Jones, partner at law firm BDB Pitmans, said: “The increase in insolvencies in Q2 2022 is unsurprising given the difficult trading conditions facing many businesses. Companies’ bottom lines and margins are under significant pressure from rising costs, supply chain challenges and the end of all Covid-19 government support.

“Looking ahead, we can, unfortunately, expect a further increase of insolvencies, particularly in sectors most affected by variations in cost and supply chain pressures and fluctuations in business confidence.”"
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If your company is struggling financially, please get in touch with us on 0800 009 6106 to find out what your options are. It may be as simple as helping you to obtain the injection of cash you need to get you back on your feet.

When it comes to insolvency proceedings, what are the warning signs to directors of potential problems on the horizon?

Stanley Coltman, co-founder of My Insolvency, speaks with Simon Thomas, a licensed insolvency practitioner and director of Moorfields Corporate Recovery.

Learn what to do in this situation
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Following the Jackson Reforms, pursuing an insolvency claim became very expensive and time consuming, leading to many insolvency practitioners writing off good claims. This is exactly why our Litigation Funding Service was created.

What are the benefits of using our litigation finance service?
> Complete transparency – works on a fixed fee basis so you’ll know from the very beginning what the fee will be should the claim be successful
> Fast results – we aim to recover monies owed within three months, if not, you’ll have the financial backing to take your dispute all the way to Court
> No financial risk because you don’t pay a penny unless the claim is successful
> Covers all upfront costs so you don’t have that initial outlay
> Also covers other costs including disbursements, legal fees and ATE insurance
> Personal indemnity insurance included

If you think our litigation finance service can help you, get in touch!
https://rpb.li/O13

As a director of a company, it is your responsibility to take immediate action if think you the business is heading into trouble.

All directors have a statutory and fiduciary duty to creditors to minimise any potential loss to all of your creditors and shareholders.

Contact us as soon as possible to find out what your options are. DO NOT bury your head in the sand, the sooner you seek advice, the better the outcome may be.

Discover how we can support you
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"Charities are impacted by the cost of living crisis on many fronts... their resources are stretched after two years supporting their communities throughout the pandemic, and they are also having to find the funds to pay higher costs. With tightening household budgets impacting donations, there is a perfect storm facing the sector, and sadly, there are likely to be some charities unable to survive this year.”
https://rpb.li/OxtA

Are you in a similar situation? Act now, the earlier that directors facing financial challenges seek professional independent advice, the better as this may result in a successful business turnaround.

Slow paying customers are one of the most common causes for cash flow issues. However, if you regularly invoice businesses, you may be eligible for invoice finance which can significantly improve your cash flow almost immediately.

Have you considered invoice finance?
Invoice finance is a way to release funds that are tied up in your sales ledger. You can sell your invoices to a third party and they will pay you a percentage of what the invoice is worth, minus a service fee.

Learn more about our cash flow solutions service!
https://rpb.li/a7tp6

Our clients were the former directors of an electrical engineering company that was forced into an insolvency procedure, following a couple of its major customers going bust. The company’s cash flow was instantly crippled by the hole caused by the down fall of its customers, not only in terms of the uninsured loss on the balance sheet following 2 debtors going bad, but also in terms of cash flow.

Having understood the position of the individual directors and their exposure under the various PGs, My Insolvency entered into communications with the various claimants and achieved individual settlement agreements with the various parties. Thereby, avoiding a formal insolvency procedure for the directors, as neither of them wished to be made bankrupt, nor did they wish to enter into an Individual Voluntary Arrangement (“IVA”).

If you have provided personal guarantees and think your business is approaching insolvency, then get in touch as soon as possible, to find out what your options are. We will always provide you with the options that are best suited to your individual circumstances by giving you honest advice.

If you would like to know more about options, when dealing with aggressive creditors threatening proceedings following the winding up of your business, then speak to one of our specialist team on 0800 009 6106 or [email protected]

A business is classified as insolvent if it is either unable to pay its debts as and when they fall due for payment (Cash flow Test) or if it has more liabilities than assets (Balance Sheet Test).

Usually, it is not one catastrophic event that causes the failure of a business, although this does occur from time to time (i.e. major customer goes bust), but a multitude of events that tip the business over the edge (i.e. economic downturn, increase in costs, increased level of competition reducing margins, currency fluctuations, bad debts etc..).

If you think this could be you and your business, get in touch with one of our specialist team.

https://rpb.li/kWHG0

"3,165 business premises, including offices, factories, shops, pubs and restaurants, entered insolvency whilst they were awaiting the result of a business rates challenge.
These 3,165 business premises which entered insolvency after challenges could have seen a cash injection of £50.76 million in rebates, with many dating back five years."

https://rpb.li/HXE

If your company is struggling financially, please get in touch with us on 0800 009 6106 to find out what your options are. It may be as simple as helping you to obtain the injection of cash you need to get you back on your feet.

"With the lifting of the restrictions on the presentation of winding up petitions, and the likely cash flow pressures caused by price inflation, it is widely anticipated that we will see an increase in the number of companies subject to winding up proceedings. For any business dealing with a company in financial distress, a recent decision of the High Court of England and Wales serves as an important reminder that transactions which take place before the company has been wound up can be vulnerable to challenge. Directors who cause transactions to take place which amount to a disposition of the company's property can also be at risk of action being taken against them personally for failing to meet their duties and for misappropriation of assets."
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This period of turmoil can result in errors being made and the directors making themselves personally liable to a variety of claims to any subsequently appointed liquidator.

The earlier that directors facing financial challenges seek professional independent advice, the better as this may result in a successful business turnaround and prevent the directors putting themselves and their company and its creditors in a worse position.

If you think this could be you and your business, get in touch with one of our specialist team.

Are You A Commercial Landlord Or Tenant?
Could You Benefit From Covid Rent Arrears Arbitration?

If you are a commercial landlord or tenant, you may be wondering if Covid Rent Arrears Arbitration could benefit you.

The Coronavirus Act 2020 placed temporary restrictions upon the options available to landlords who were owed money from tenants. For example, the right to forfeit a lease was suspended as was the issuance of Statutory Demands. The protective period covered 21 March 2020 to 18 July 2021.

Regardless of the steps taken by either the landlord or tenant whilst the Act was in force, it follows that there are several cases whereby the parties have been unable to resolve the matter.

There may be landlords who have significant arrears due to them not only for rent but also for service charges, insurance, interest, and tax.

By the same token, there will be tenants who simply cannot afford to pay the sums they owe whilst they are getting back to business.

Discover more in our latest blog!
https://rpb.li/oHM

Are you a commercial landlord or tenant - Could you benefit from Covid Rent Arrears Arbitration? - My Insolvency If you are a commercial landlord or tenant, you may be wondering if Covid Rent Arrears Arbitration could benefit you. The Coronavirus Act...

Bankruptcy is a legal process or court order, while insolvency is a state of financial distress.

Bankruptcy:
A legal process to deal with the affairs of an individual who cannot pay their debts.

An individual can apply to make themselves bankrupt or, if they owe over £5,000, one of their creditors can apply to make them bankrupt.

Once bankrupt, a Trustee will be appointed over the individual’s estate and will manage the financial affairs of the individual, with a view to realising any assets in order to pay the debts.

Following completion of the process, the bankrupt will be discharged from their liabilities.

Insolvent:
A position of being unable to pay the amount owed to a creditor or creditors by virtue of insufficient assets to cover liabilities.

There are many tests that can be undertaken to see if your company is insolvent, such as:
Balance Sheet Test

If the assets of a company are insufficient to cover the liabilities, then the company is considered to be insolvent on a balance sheet basis.

Cash Flow Test

An inability to pay debts either now or in the “reasonably near future” which is established by looking at the cash flow of a business.

If your business is in need of financial support, contact one of our specialist team to see how we can help.