On Bankruptcy/Winding Up

There are many reasons why a business can run into financial trouble. Debtors not meeting their payment obligations, problems with the tax office i.e. the business may have received a court summons or a Director’s Penalty Notice or even worse still received a statutory demand which if ignored can lead to the winding up of the company.

Left unattended, these problems can ultimately bring a business to its knees. That need not happen and there are a variety of mechanisms designed to rehabilitate a business struggling through financial difficulties, which require the application of legal and accounting techniques known to the legal and accounting profession.

One must be prepared to act earlier rather than later and not allow the business to drift on into crises when major decisions are often made in panic. One can be led by promises and good sales talk by people who are acting as commission agents. These people are adept at finding troubled businesses, by searching judgment lists, bankruptcy notices, company winding up notices; and any information on a public register. They use this information to deliver their sales pitch directed to solutions which they are not able deliver, and then refer the victim on to their friendly liquidator or Bankruptcy Trustee.

Truly professional Liquidators and Trustees do no work with these people in this way.

Generally speaking, these people are unscrupulous scouts acting for equally unscrupulous liquidators and bankruptcy trustees; the victim will normally have paid a handsome fee to these rogues or to the Liquidator or Trustee will pay them. You will you have no assurance that your business will not be “taken out of your hands” and trashed, nor any assurance that any rescue operation will be in safe hands.

There are honest and capable liquidators and trustees available and it is important that you deal with reliable people and not fall prey to predators.