Facing insolvency can be an anxious time for businesses. Stacks can provide advice and help you find innovative ways to deal with your business’ financial difficulties.
Insolvency raises complex issues for both creditors and directors.
Insolvency occurs when a company is no longer able to meet its outstanding liabilities. Company directors must decide what action to take to maximize the return to creditors whilst also avoiding the possibility of insolvent trading, which can make the directors personally liable for the company's debts. The company may choose to enter into an informal arrangement with its creditors, known as voluntary administration, or alternatively, its creditors may initiate winding up proceedings, putting the company into liquidation. In the event of liquidation the company is wound up and ceases to exist as a legal entity.
At Stacks Law Firm we utilise our extensive experience in corporate insolvency to advise our clients on their rights, and any liabilities which may arise. Our team will advise appointees in relation to their statutory obligations and the statutory recovery actions which are available to them, including insolvent trading, unfair preferences and voidable transactions, as well as avenues of litigation.
We can find innovative ways of resolving a wide range of issues arising from corporate and personal insolvency, as well as business succession planning and asset protection. In addition to having specialist knowledge in insolvency, our team provides for immediate access to other specialist lawyers within the firm in the areas of corporate and commercial, building and construction, property and employment law.
We will also assist both secured and unsecured creditors in filing a statement of claim or statutory demand in order to recover their debt, and advise potentially insolvent companies with regards to the risks of continuing to trade while insolvent.