How we do it?
We use the Insolvency Act, mainly the 1986 Act. This was primarily put in place to preserve jobs, to keep people employed. After all, people working contribute towards the
economy, people who don’t are a drain.
The Act allows directors to put forward formal proposals to a company’s creditors. These proposals are lodged at court and provide a way forward which gives the best financial
return for a company’s creditors. This has to be done through a licensed Insolvency Practitioner. The way that Debtsgone do this is to take the director through the options and
once they have decided to take that step we will then pass the file to the Practice to take it through the legal route. But remember your Advisor is always there should you need
them.
WHAT IS THE RIGHT WAY FORWARD? Well it could be any one of a number of things, for instance: -
COMPANY VOLUNTARY ARRANGEMENT (CVA)
This is primarily what Debtsgone promote, the formal explanation for this is:-
“A Company Voluntary Arrangement is a formal agreement with a company’s creditors, lodged at court, to pay so much back in the pound over a period of up to 60 months”.
WE DO NOT CHARGE YOU for a CVA, we do get paid but out of the scheme through the Insolvency Practice. What really happens is that the people you owe money to indirectly
pay the costs of the CVA.
The scheme can potentially save you a lot of money, keep your company trading and keep you in control. To qualify for this scheme you simply need to have over £15.000 of
unsecured debt and be finding it difficult to pay the bills.
LIQUIDATION In the right circumstances liquidation could be just the rescue package you need. If your company is in such a mess it might just need a fresh start and dependant on the Company’s assets IT MIGHT NOT COST YOU A PENNY.
ADMINISTRATION There are two types of Administration: -
PRE-PACK ADMINISTRATION
This is where the terms of the Administration are agreed prior to signing and you are in the Administration only a matter of moments. Effectively a new company is formed and
assets from the old company are transferred to the new company. This form of action is generally taken when a company is under any form of immediate threat from such as
landlords, bailiffs or debenture holders. The effect would be that the unsecured debt is written off and the business emerges stronger through the formation of a phoenix
company.
However every Company is different therefore contact us first and we will discuss the options with you.
TRADING ADMINISTRATION
If a Director wants to keep a company trading but that company is insolvent or in serious financial difficulty it may be that a TRADING ADMINISTRATION is the answer. The
Administrators role, once appointed is to examine the company’s affairs with the view to rescuing the business and carry on trading if at all possible.
Once the company is placed into Administration it effectively stops all legal action giving the Administrator time to do his job.
PERSONAL DEBT As previously mentioned, do not worry if you need a solution to personal debt just speak with one of our Advisors and they will talk you through your options.
LET’S MAKE IT SIMPLE IF YOUR ASSETS CAN’T COVER YOUR CREDITORS, YOU HAVE OVER £15.000 OF UNSECURED DEBT AND ARE HAVING DIFFICULTY PAYING BILLS SIMPLY CONTACT US AND ONE OF OUR TEAM WILL EXPLAIN EVERYTHING IN A LANGUAGE WE ALL UNDERSTAND