Insolvency

We can organise professional representation at creditors meetings on your behalf and provide advice on any aspect of insolvency proceedings

IVA – Individual Voluntary Arrangement

Alternative to bankruptcy for individuals where the debtor makes an arrangement with their creditors to pay part of the debt usually by instalments as opposed to going into bankruptcy where the creditor is unlikely to receive any dividend – proposal must be ratified by a minimum of 75% of creditors

CVA – Company Voluntary Arrangement

Applies to limited companies and similar in aspect to an IVA

Bankruptcy

Bankruptcy involves the making of a court order against an individual. The procedure begins with serving a statutory demand on the debtor demanding payment within 21 days. If no payment is received then an application can be made for a court hearing to have the person declared bankrupt.

Liquidation

This applies to a limited company and is either a creditors compulsory or compulsory winding up – a liquidation order by the court – similar procedure to bankruptcy.

Receivership

Receivers are normally appointed by a bank (or other lending institution who have security for a loan) The receiver can continue to operate the business and often does whilst trying to sell it as a going concern
A receiver has no responsibility to dealt with unsecured creditors prior to receivership. They are only interested in realising the lending institutions security. If sufficient monies become available for distribution to the general body of creditors then they are dealt with by a liquidator appointed separately.