Insolvency and Bankruptcy

Insolvency is the inability to pay debts as and when they fall due. Although it appears intimidating it is a state that individuals often face when a redundancy occurs, or a large bill arrives unexpectedly. In the corporate world, the ramifications may be much more serious. Bankruptcy is in fact a legal process whereby you seek a type of absolution for debts. In a corporate context this would be applying for a voluntary administration.

This is a complex area of law and involves lawyers and accountants working closely with each other.

In a commercial context, the most commonly faced issue in the insolvency realm, is where a statutory demand has been issued. This is also the most common presumption of insolvency. And insolvency in turn is the most common reason for placing a company into liquidation.

If you are considering liquidation or bankruptcy or have been served with a creditor’s petition or statutory demand then time is of the essence and we strongly recommend seeking legal advice as a matter of urgency.