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The latest insights and trending topics from Begbies Traynor Group
Understanding commercial leases and personal guarantees
Given the complexity of many commercial leases, it is vital that you understand your rights when it comes to signing a personal guarantee for a lease. The ramifications of failing to meet lease repayments are serious, but knowing the consequences to you personally if your business starts to struggle financially, could help to protect your home and other assets.
Understanding HMRC Distraint Orders and Notice of Enforcement
If your company owes money to HMRC or another creditor and you have been unable to settle the debt, they may take out a Distraint Order against your company. This involves the seizure of goods to the value of the debt, plus the fees for enforcement action.
What happens to my husband’s / wife’s / partner’s debts when they die?
Managing the estate of an individual who died with debts is a difficult and sensitive process that requires a high level of technical expertise.
Joint and Several Liability Notices: Directors of insolvent companies face greater personal exposure to tax liabilities
While company directors are generally protected by limited liability, recovery powers granted to HMRC in the Finance Act 2020 mean directors can face greater personal liability for tax debts held by the company in the event of insolvency.
Can I resign as a company director?
If you are thinking of resigning as a company director, there are specific steps you and the company must take.
Who gets paid first when a company goes into liquidation?
A preferential or preferred creditor reserves the right to first payment during an insolvent liquidation, as laid down by the Insolvency Act.
What happens when a company goes into liquidation?
Liquidation is a process that closes a company down and removes it from Companies House; here we explain the processes for solvent and insolvent liquidation
Accelerated Payment Notices
If you are one of the many companies that have received an accelerated payment notices then you have very little time in which to act.
What is a Statement of Affairs (SOA) during a corporate insolvency procedure?
A Statement of Affairs is a document detailing a company’s assets & liabilities.We outline the Statement of Affairs during a Corporate Insolvency procedure.
What happens to company assets when a business is wound-up?
As part of the process of winding up a limited company, all of its assets will be liquidated, that is sold to realise as much money as possible.
Understanding a company director’s fiduciary duties and consequences of failing these duties
Your fiduciary duties as a director reflect a relationship of trust and loyalty between yourself, the company, its members, and stakeholders. The expectation is that you will act in good faith, and in the best interests of the company.
What happens to debts when a company is dissolved?
Dissolution is not an appropriate solution for striking off (dissolving) a company with debts. Liquidation is recommended for several important reasons.
What are the signs of business failure?
When a business fails there are early warning signs to look out for that can help you deal with the matter before it becomes too damaging. Lack of cash often the first indication, and this may materialise as an inability to pay the bills on time.
What is a Stay of Execution for a limited company?
When a limited company fails to pay a County Court Judgment (CCJ), the creditor can seek enforcement assistance from High Court Enforcement Officers (HCEOs), also known as bailiffs.
