The BCR Insolvency Blog

What Happens When A Company Goes Into Liquidation?

Posted by Chris Knott on 30-Apr-2018 16:54:37

Liquidation means terminating a company and selling off any assets it owns to pay some or all of the debts it owes. It is also known as winding up. A liquidation is carried out by an appointed licensed insolvency practitioner, acting in capacity of liquidator. A liquidation can be requested voluntarily by the directors or made compulsory by a court order, at the request of one or more creditors. Usually, it happens as a result of accrued debts that a company is unable to pay but it can also happen if the owner/directors simply want a solvent company to be dissolved and struck off the register of companies.

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Topics: Liquidation

What Is A Winding Up Petition?

Posted by Chris Knott on 11-Apr-2018 14:46:43

A Winding Up Petition is usually filed in court by a disgruntled creditor who feels that liquidating your company represents his best chance of receiving payment, or at least some payment, from your company. It is the second of the typical 3-step sequence to a hostile liquidation of your company. It is an extremely serious matter and needs to be dealt with immediately. Time is of the essence here.

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Topics: Winding Up Petition

The Winding Up Petition Procedure Explained In 6 Steps

Posted by Philip Wood on 04-Apr-2018 12:06:20

A Winding Up Petition is probably the most serious existential threat that a company can be exposed to. If the petition succeeds, the company will be placed into compulsory liquidation and will cease to exist. There is a fixed procedure and timetable for the various steps involved, and it pays to understand the process. It is also highly advisable for a company so threatened to urgently seek the advice of a licensed insolvency practitioner. The sooner this happens, the greater the likelihood of a satisfactory outcome.

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Topics: Winding Up Petition

How To Stop A Winding Up Petition

Posted by Chris Knott on 29-Mar-2018 09:33:02

A Winding Up Petition is an extremely serious matter and is often taken as a final option by a creditor who has been unable to obtain payment from your company. There is little time remaining before the court hears the petition and the claimant’s grounds for bringing the action. If the company does not respond with a strong case for obtaining a stay or an injunction, then the court will issue a winding up order on the same day of the petition hearing. At that point, the company is in the hands of the Official Receiver and no longer owned by its owners or managed by its directors. However, there may be grounds for preventing the court from issuing a Winding Up Order when the petition comes before it for a hearing.

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Topics: Winding Up Petition

Is This The End of EBT?

Posted by Philip Wood on 20-Mar-2018 14:51:27

2017 saw a flurry of letters from HMRC arriving on the doorsteps of Employee Benefit Trust (EBT) users. This is part of HMRC’s ongoing war on ‘tax avoidance’ schemes initiated in 2010. Employee Benefit Trusts have been used extensively since the 1980s to reduce the tax burden on employees. The idea is that salary payments are made not to the employee directly, but are paid to the trust by the employer. The employee then receives loan advances from the EBT.

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Topics: News

Can A Winding Up Petition Be Withdrawn?

Posted by Chris Knott on 14-Mar-2018 14:11:29

The short answer is Yes but it is important to understand the limitations of this action. It may help to better understand what exactly a Winding Up Petition is and how the situation developed to the stage where the company was served with one.

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Topics: Winding Up Petition

BCR Make Positive Impact With B1G1

Posted by Philip Wood on 05-Mar-2018 14:33:17

Some emails that come through to my work inbox are a pleasure to receive, none more so than our quarterly giving summary from B1G1. B1G1 is a business giving scheme that allows companies to link charitable giving to specific business processes. This makes charitable giving scalable and affordable – growing as your business grows and never negatively impacting your cash flow.

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Topics: B1G1

What To Do When You Can't Pay HMRC Debt

Posted by Chris Knott on 22-Feb-2018 12:28:49

There are many reasons why business owners can’t pay HMRC debts as and when they fall due. They could, for instance, have been going through a lean period for some time and therefore haven’t been able to aside any funds in anticipation of their tax liabilities.

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Topics: Debt Recovery, HMRC

Can HMRC Write-off Debt?

Posted by Chris Knott on 14-Feb-2018 12:44:10

If your company is struggling to pay off debts to HMRC then the bad news is the debt won’t be written off or renegotiated.

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Topics: Insolvency Practitioner

Insolvencies Expected To Rise In 2018 Warns ICAEW

Posted by Philip Wood on 08-Feb-2018 11:48:31

Phil Wood, Managing Director of Barringtons Corporate Recovery and President of the Staffs, Salop and Wolverhampton Society of the Institute of Chartered Accountants reports that the Q4 insolvency statistics released today show a mixed picture with a reduction on Q3 company insolvencies but a static picture in individual insolvencies. However, these figures are expected to get worse for businesses in Q1 2018, as consumers are tightening their purse strings post-Christmas. ICAEW reminds businesses facing insolvency to seek help earlier and help encourage recovery.

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Topics: Insolvency Practitioner, News

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