At Bray & Bray we advise businesses, shareholders, company directors, creditors and insolvency practitioners on all aspects of business insolvency. In fact, our advice usually begins in the months prior to a company insolvency when we are approached to discuss a business’ financial situation and options to turn it around.
Broadly speaking, we will be introduced to a business in financial difficulty either because the company’s own directors have identified an issue for which they require advice or because a creditor, customer, supplier or lender to that business is concerned about that business’ insolvency and its potential impact on their own business.
It may seem counterintuitive but our aim at Bray & Bray is to avoid business insolvency if at all possible and we try very hard to solve the problems that arise and help turn the business around as part of a team of professional advisors.
How can you tell if a business is facing insolvency?
Typically a business is insolvent when it is unable to pay its debts as they fall due. This is known as cash flow insolvency. Another indicator of insolvency is when the business’ liabilities on its balance sheet are greater than its assets. This is known as balance sheet insolvency. However, there are many successful businesses that fail the balance sheet insolvency test but which are able to pay their debts as they fall due.
When your business, or a business with which you deal is faced with potential cash flow insolvency or balance sheet insolvency then you need to take legal advice as to your options (and if you are a manager of that business your obligations) relating to insolvency as soon as possible. Ideally if we, as specialist insolvency lawyers, are to give you the most options and opportunities for successfully navigating the choppy waters of insolvency then we need to speak to you even earlier, when the first hint of trouble becomes apparent.
What are my options when faced with insolvency?
The earlier you take legal advice as to your business’ financial situation the more options you have. It really is that simple. If you wish to avoid an insolvency process then you need to take steps as early as possible to deal with the company’s creditors and the finances of the business. Although we specialise in insolvency, a great deal of our business and our success comes from attempts to rescue businesses and the earlier we are involved in giving legal advice the better our chances of rescuing the business and avoiding an insolvency process altogether.
If you are a creditor or customer of a business that you think is in financial difficulty, you should also speak to us as soon as possible. We have enjoyed much success in assisting customers and creditors of insolvent businesses in taking a lead role in rescuing that business and so protecting our client’s interests. In some cases a customer of a distressed business that is a crucial link in its own supply chain has been able to acquire the business out of insolvency to ensure their own security of supply. The earlier we explore the options the more options we have.
I have received a statutory demand, what should I do?
Pick up the telephone and call us today on 0116 204 5327. You have a very limited amount of time to deal with a statutory demand before official processes take over and you could find yourself faced with a petition to wind your business up.
Questions about company and corporate insolvency
Although it can be a scary time, if the threat of insolvency looms please do not stick your head in the sand. Take advice as soon as possible by calling a member of our team.
Speak to a corporate insolvency lawyer
For confidential and comprehensive advice on how best to deal with any kind of corporate insolvency, talk to our insolvency solicitors today. Bray and Bray has three main offices in Leicestershire, contact us to discuss an enquiry or a case you have or feel free to pop in and see us at your local office by clicking on the links below:
Leicester call us on 0116 254 8871.
Hinckley call us on 01455 639 900.
Market Harborough call us on 01858 467 181.