Acting quickly before a situation becomes more difficult to handle is the key to success when a business has financial difficulties. This comment applies equally to companies, partnerships and sole traders.
By taking prompt action at the right time it is often possible to avoid insolvency. The Insolvency Acts provide a number of ways in which a sound business with financial difficulties can be saved. Corporate Voluntary Arrangements are just one example of a method by which a company or limited liability partnership can put in place an arrangement with its creditors which enables it to continue to trade. There are similar provisions that apply to individuals and partnerships.
At Bridge McFarland we work closely with a number of national and local Insolvency Practitioners who can bring their expertise and professional qualification as Licensed Insolvency Practitioners to the assistance of a business in difficulty. We can usually arrange for an initial meeting to take place without any obligation as far as our client is concerned. In urgent cases this can be done immediately. If appointed we will then work closely with the Insolvency Practitioner to deal with the issues. If a rescue plan is put in place the need for our involvement may be greater than in the case of the closure of a business. Whatever the circumstances we aim to give pragmatic and sensible advice to help those in difficulty to overcome their problems.
It is not only our lawyers who are directly experienced in insolvency law who can offer help. A business may, for example, be struggling because it is unable to recover money owed to it or because of a broken contract. In such circumstances our debt recovery or commercial litigation solicitors would be available to assist. On the other hand there may be difficulties with employment law or in connection with freehold or leasehold property. As a leading firm in our region we can call upon a wealth of knowledge and expertise to help in all the relevant areas of legal practice.
Even when it is not possible to avoid a sale or closure of a business it is important to take proper advice. Directors and owners of businesses have a duty to act promptly and within the statutory framework when a difficulty arises. Taking proper advice can be very important if personal liability is to be avoided or mitigated. The law requires action to be taken and doing nothing can result in adverse consequences for the individuals involved.
If you are a business or individual needing help in this area then please get in touch. We will be happy to discuss the position with you without any commitment as far as you are concerned.
Members of our commercial team would be happy to discuss how we can help on an informal basis.
They can be contacted, as follows: