We’re often asked about the difference between Liquidation and Administration and when one should be used over the other. Here we cover the main differences between the two formal insolvency procedures,
Category: Insolvency Law
Directors often ask if they are allowed to start another company having previously had a business which entered into liquidation, or another insolvency procedure. This article explores the options and potential pitfalls in such a situation. In general terms there is nothing to stop a director from becoming, or continuing to be, a director of …
Directors of a limited company which has gone into liquidation are prohibited from being involved with companies which use the same, or similar, name in the future unless specific procedures are followed. This is covered under Section 216 of the Insolvency Act and a director needs to carefully consider these before proceeding. What is Section …
The Government’s loan support schemes have helped many businesses to weather the storms caused by COVID-19. By the end of June, over 1 million loan applications had been approved amounting to total lending of £42.9bn, of which £29.5bn related to the Bounce Back Loan (BBL). Unlike the Coronavirus Business Interruption Loan (CBIL), for which there …
The Corporate Insolvency and Governance Bill is currently making its way through Parliament and is expected to become law by the end of June 2020. There are a number of key aspects to the Bill as far as insolvency is concerned, but perhaps the most striking is the introduction of a new statutory Moratorium process. …
How are funds distributed in a Liquidation and who is at the top of the pecking order? In this month’s article we discuss the strict hierarchy within the Insolvency Act, which determines the order that creditors will be paid during liquidation.
If a director, manager or secretary of a company fails to pay VAT, PAYE or National Insurance Contributions (NIC) deductions and HM Revenue & Customs (HMRC) consider that non-payment was due to fraud or neglect, then they have the power to issue the individual with a Personal Liability Notice (PLN).
Find out how taking early action and following effective steps can help businesses minimise the threat of insolvency.
Changes to UK insolvency law that came into force on 1st October 2015, give creditors a better insight into the fees charged by Insolvency Practitioners (“IPs”) over the life of a Creditor’s Voluntary Liquidation, Administration or Bankruptcy.
Directors have a legal duty to ensure that their company is not trading whilst insolvent. But what does “trading whilst insolvent” really mean and how can it correctly be identified? This article provides an overview of the insolvency tests that can be applied to help company directors make an appropriate assessment of the situation.
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Paul Mallatratt (Licence No. 2039) and Louise Freestone (Licence No. 2030) are licensed to act as insolvency practitioners in the UK by the Institute of Chartered Accountants in England and Wales and are subject to their Code of Ethics, available in English at www.icaew.com[...]code-of-ethics-d
In carrying out the regulated profession of Insolvency, the firm is subject to the Insolvency Regulations and Guidance Notes at www.icaew.com/insolvency and the Statements of Practice at www.icaew.com[...]insolvency-regulations-and-standards