Company Liquidation / Insolvency Options (CVA/IVA)/ Directors Redundancy Claims

Company Liquidation / Insolvency Options (CVA/IVA)/ Directors Redundancy Claims

by admin

Are you looking for business debt help?

Considering formal insolvency options for yourself (sole trader) or your business can’t be taken lightly. There are numerous factors to consider should your business be in severe financial difficulties and you need business debt help. Your company may be insolvent if it’s liabilities exceed it’s assets and it cannot pay it’s debts alongside no prospect of the company continuing to trade.

Companies the length and breadth of the UK find themselves needing business debt help and in an insolvent position every day but for many, the business may still be viable and simply suffering short term difficulties – It is time to take action if you feel that you cannot continue to trade without worsening your position and those of your creditors.

Seek advice as early as possible, licensed Insolvency firms will happily help assess your position and help you weigh up the best solutions. There are options such as Voluntary Liquidations, Members’ Voluntary Liquidations, CVA, IVA and more – All of which have key differences.

Should you require further advice, we are more than happy to help and will ensure you speak to those qualified to discuss these matters. You can call our friendly team on 01704 628105 or start a live chat with us on our website.

What is a CVL? Creditors Voluntary Liquidation.

Numerous companies at present may still be viable businesses and simply suffering from short term cash flow problems or you could find your business in an insolvent position. However, it is time to seek business debt help and to take some form of action, if you feel that your company cannot continue trading without worsening the position of it’s creditors.

A Creditor’s Voluntary Liquidation (CVL) is when you are placing an insolvent company into liquidation. This solution is appropriate when there is no other option than the company ceasing to trade and being wound-up. In a CVL, assets are released and sold with a view to paying a dividend to creditors where possible.

What is a CVA? Company Voluntary Arrangement.

This is a fairly common insolvency solution used generally as an act of recovery; particularly for companies that are struggling with debts but are still a viable business. For Directors wishing to retain control of the company and attempt to trade out of difficulties, a CVA is likely to be the most suitable solution.

What is an IVA? Individual Voluntary Arrangement.

This was introduced by the government in 1986 as an alternative to bankruptcy for individuals across the UK. It is a legally binding agreement between you and your creditors and allows you to reorganise your financial affairs to the satisfaction of everyone. If you are under the stress of escalating debts as an individual, even if HMRC are one of your creditors, you can speak to us today for further advice and how we can help you with this matter.

Directors Redundancy Claims

Are you a company Director who can prove your status as an employee? If so, you could be entitled to redundancy, just like your employees. Many Directors, whilst their company is going through insolvency proceedings, may not be aware that they have a claim for redundancy too. For those that are aware, claims may be rejected because they fail to process this correctly – Professional assistance is always advised, not only to maximise the funds you may get back but to ensure the overall success of the claim itself.

Provided that you can prove your status as an employee of the company, you may be eligible to submit a claim alongside all other staff previously employed. You must be able to demonstrate you were actively involved in the business as opposed to holding a non-executive style of role. This is usually demonstrated by the following:

The Director is subject to contract of employment – written or implied.

The Director was drawing a salary through the companies PAYE system.

The Director worked a minimum of 16 hours per week.

If the above criteria are met, then it is likely that you may be eligible for statutory payments. At a difficult time when a source of income has been lost, a successful claim could provide some welcome financial assistance. We can help you look into this further, check your eligibility and ensure you get the best possible professional advice.

If you would like to know more or see how we can help, call our friendly team on 01704 628105 or start a live chat with us on our website.

 

By using this website you agree to accept our Privacy Policy and Data Protection

Social media & sharing icons powered by UltimatelySocial