Company Insolvency
Company (commercial) Insolvency is a condition where a business is unable to pay its debts. A business may be unable to pay their bills on time, or may have liabilities that exceed their assets.
If you are a creditor of a Business to Business (B2B) debt or you are owed money by a Business, then you can apply to make the debtor company "Insolvent", by way of a Winding-Up Petition. You can do this if you meet the below criteria:
- The debt is more than £750;
- You can prove that the company cannot pay you.
A winding-up petition is essentially the "bankruptcy petition" of a business debt; this will be a notice of intent to wind the company up if they do not pay the debt.
There are forms that will need to be filed to court in order to wind a company up, however at Town & Country Legal Services, we include all of this within the winding-up package you pay for.
What happens if my application is successful?
- We will aim to employ our Insolvency Practitioners who will look to give you the best return;
- The company assets may be sold;
- If there are any disputes, these will be deemed as settled;
- Funds will be paid to you and the other creditors.
It is worth noting that without the right expertise, you may not result in a dividend return. We suggest speaking to us at Town & Country Legal Services first and we can advise you on the viability of the case.