Receiving any kind of debt collection notice can be both disastrous for a company, and worrying for its directors. It demonstrates a shift in the attitude of a company’s creditors, poses a threat to a company’s assets and cashflow, and could even escalate into a legal dispute. To avoid such an unpleasant development, it is best to swiftly deal with an enforcement notice upon receiving one.

Although any contact from debt collection agents is usually a bad sign, not every notice or letter is the same. There is a considerable difference between contact from bailiffs and contact from debt collectors, which will impact the responses available to you. But what exactly are the differences between bailiffs and debt collectors, and what do they mean for you and your company?

In this article, Clarke Bell breaks down the differences between bailiffs and debt collectors, how they might approach your company, and the ways in which you can respond to them.

What is a bailiff?

Bailiffs, often referred to as enforcement agents, are individuals who work to collect important debts. Bailiffs can work for a private company or the council, and most often enjoy the backing of the courts. This allows bailiffs to be more forceful in their debt collection, especially if they have a warrant for entry or asset seizure.

When are bailiffs used?

Bailiffs can be used to collect a wide range of debts, though they are mostly used after a dispute in court. For example, bailiffs could be used to collect criminal fines, County Court Judgments, tax arrears, or large awards ordered by a civil court.

Before visiting your company, bailiffs will send an enforcement notice detailing the specifics of your case. Bailiffs will visit your company after seven days, excluding holidays and Sundays, have passed since the serving of the notice.

What is a debt collector?

Debt collectors are individuals who work for a debt collection agency to collect various debts. Rather than working on behalf of the courts, debt collectors are hired by creditors to collect an outstanding debt without necessarily getting the courts involved. As the courts do not directly appoint debt collectors, they have much less power when it comes to collecting a debt.

When are debt collectors used?

Debt collectors are used by creditors to collect an outstanding debt. These debts typically include small loans, such as personal loans or credit cards, unpaid fees, or unpaid costs for goods and services. Debt collectors may also purchase a debt, entitling them to collect despite not being the original creditor. If you receive an unexpected call from a debt collection agency, you may want to contact your original creditor to find out if they sold the debt.

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What is the difference between bailiffs and debt collectors?

Despite working in the same industry for the same goal, there is a world of difference between bailiffs and debt collectors. These differences mostly stem from bailiffs working directly on behalf of the courts, thereby enjoying a level of authority debt collectors simply don’t possess.

What debts can be collected?

Bailiffs generally collect debts of at least some legal importance. This includes criminal fines, tax arrears, dues owed to a local council or HMRC, child maintenance payments and County Court Judgments (CCJs). As these debts are of a legal nature, they are typically only collected after a court hearing.

Debt collectors tend to specialise in collecting small debts of a commercial nature, rather than any outcome of a legal dispute. This means debt collectors have a wider range of debts to collect, ranging from unpaid personal loans to company equipment rental arrears. However, although debt collectors have a wider range of applications, they have much less authority to lean on should a debtor refuse to cooperate.

Read Our Complete Guide To Debt Collection

Legal powers of bailiffs and debt collectors

The main difference between bailiffs and debt collectors resides in the legal authority held by both agents. This difference in powers greatly impacts how you can respond, and how forceful your debt enforcement agent can be.

What can bailiffs do?

Bailiffs have varying levels of authority depending on the involvement of the courts and the severity of a debt. For example, bailiffs who are directly appointed by the courts may be able to force entry into a home or company premises in certain cases. Force may be used when collecting debts on behalf of HMRC, or important debts such as a criminal fine. However, force can be more readily applied when collecting debts from companies, as bailiffs have a wider array of powers when collecting from companies and the self-employed. When collecting from a dwelling, bailiffs usually cannot rely on force. Instead, they must make it clear who they are and ask for permission to enter. Any attempts of force can be grounds for a legal case.

Once bailiffs have gained entry, they will first make a list of any assets suitable for seizure. They will generally prefer high-value assets, such as vehicles or equipment, though they will include low-value assets if necessary. Any items listed can be taken away at a later date, giving you the chance to make repayments and settle the debt in question.

What can debt collectors do?

Debt collectors are much more limited in how they can collect a debt. Their powers start and end at the ability to ask for repayments. They can’t use any force, can’t gain entry to your property, and must leave immediately once you tell them to. However, this doesn’t mean you should ignore debt collectors, as your creditor may escalate the issue if you refuse to make repayments.

Handling bailiffs and debt collectors

Handling bailiffs and debt collectors can be a daunting task, especially if your company is insolvent and cannot afford to repay the debt in question. In such cases, the usual methods of dealing with enforcement agents, such as repayment or negotiation, are not applicable. Instead, directors may wish to consider liquidating their company.

Creditors’ Voluntary Liquidation (CVL) can prove to be a reliable method of solving debt-related problems faced by an insolvent company. It allows directors to appoint an insolvency practitioner of their choosing to the role of liquidator. This liquidator will dispose of company assets for the highest possible value, distribute the proceeds amongst creditors, and wind up the company once all distributions have been made. The CVL procedure also affords directors certain legal protections, ensuring creditors cannot launch legal action during the procedure, and that directors are protected from accusations of misconduct.

For more information regarding Creditors’ Voluntary Liquidations, read our complete guide to the procedure.

Clarke Bell can help

Receiving a notice from the bailiffs or debt collectors is never a good part of your day. An impending visit from any debt enforcement agent is a serious problem, one that requires fast action to remedy. Clarke Bell can help you find the best action to take.

We have more than 29 years of experience in helping struggling companies find the best solutions to their financial problems.

Our team can help you find the most suitable approach for your company, whether it be a business rescue plan or Creditors’ Voluntary Liquidation.

Don’t hesitate to contact us today for a free, no-obligation consultation and find out exactly what we can do for you.

There comes a time for most businesses to wind down operations. Some business owners may wish to retire, move on to another venture, or close for a range of other reasons. The question is, how should a business owner close their business, and who needs to be informed, if anyone?

In this article, Clarke Bell will answer these questions, breaking down the process of closing a business, and discussing the options available to you as a business owner.

Preparing to close a business

When the time comes to close down your business, no matter the reason, you’ll need to make some preparations first. Closing a business is a serious affair, with a host of legal requirements that must be followed carefully to avoid receiving any penalties. Before you take any steps to formally close your business, make sure you haven’t missed any of the following:

  • Pay off any outstanding creditors and liabilities, including unpaid tax bills, utilities, and invoices. Failing to ensure all of your company’s liabilities are covered before winding up will obstruct your attempt to close.
  • Collect any outstanding payments owed to your company, e.g. from clients.
  • Notify HMRC that your company will be closed, and will no longer pay Corporation Tax, PAYE scheme payments, and VAT, if applicable. HMRC will then issue a notice informing you of your company’s deregistration date.
  • Separate any assets owned personally from those owned by the company. Transferring company-owned assets to your personal ownership may incur Capital Gains Tax, which can be a nasty surprise if unexpected.

Closing a business as a sole trader

Ceasing trading as a sole trader is fairly simple and straightforward, depending on the size of your business. To cease operations as a sole trader, you will need to inform HMRC of your intentions, change from Class 2 or Class 4 National Insurance rates if you cease self-employment entirely, and sell off any assets related to your business. You may also apply for loss relief, if your business sustained a loss in its final year.

Closing a limited company

Closing a limited company can be a more complicated affair compared to ceasing operations as a sole trader. For a start, it requires directors to agree, as one director cannot unilaterally choose to close a company in the vast majority of scenarios. Directors must also adhere to the checklist mentioned earlier, informing HMRC of their decision to close, and requesting to mark their company ineligible for tax. Once directors receive a response detailing the date on which their company will be deregistered, they may move on to officially closing their limited company.

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What are my options for closing a limited company?

There are several methods available to directors looking to close their limited company, with the most appropriate depending largely on the financial state of the company in question.

Directors of solvent companies (i.e. ones with no debts they can’t pay back) can choose between Members’ Voluntary Liquidation and company dissolution.

For insolvent companies (i.e. ones which do have debts they can’t pay back) a popular option for closing down is Creditors’ Voluntary Liquidation.

Let’s consider these procedures in more detail.

Members’ Voluntary Liquidation

Members’ Voluntary Liquidation (MVL) is an option for directors looking to close their solvent companies. While most solvent companies will be eligible for an MVL, the procedure is especially beneficial for companies with large reserves of retained profits – typically over £25,000. Such companies are best positioned to take advantage of the main benefit offered by the MVL procedure – tax efficiency.

Tax efficiency is the primary benefit offered by the MVL procedure. It allows companies to dispose of assets effectively, ensuring shareholders retain the largest possible portion of their investment. The MVL procedure achieves this tax efficiency primarily through two means:

  1. any funds realised as a result of the MVL procedure will be taxed under Capital Gains Tax (CGT) rates. CGT poses a notably lesser strain on realised profits compared to Income Tax rates.
  2. shareholders may make use of Business Asset Disposal Relief (BADR) to reduce their overall tax burden. Shareholders may apply for BADR on their Self-Assessment Tax Form, up to a lifetime limit of £1 million. This relief, coupled with a Capital Gains classification, can result in a tax rate as low as 10%.

Company dissolution

While an MVL can be great for some companies, it is not always the best solution for others. Smaller companies with little retained profits may benefit more from company dissolution. Company dissolution is a cheaper methods of closing a company, requiring directors to cover the cost of transferring assets from the company, posting notices in the Gazette, and a fee for the submission of a DS01 form. This fee is £10 if done in paper format, or £8 if done via the online portal.

Once the decision to dissolve has been made, directors must inform all related parties and post a notice in the Gazette. Should this be ignored, related parties, such as shareholders or outstanding creditors, may object to the attempted dissolution. This can result in the procedure being delayed, or stopped entirely. Directors may even be accused of misconduct if the attempted dissolution is interpreted as a means of escaping debt.

You cannot dissolve a company if it has outstanding debts.

Creditors’ Voluntary Liquidation

Directors of insolvent companies who are looking to wind down operations must consider procedures other than the aforementioned. Creditors’ Voluntary Liquidation (CVL) is one such alternative, and is commonly used by insolvent companies.

A CVL provides an efficient method of closing a company with debts, and it provide legal protections for both the company and its directors. Directors need to appoint a licensed insolvency practitioner to handle the process, ensuring no loose ends remain at the end of the procedure. Creditors may not mount any legal action against a company once it has been entered into the procedure. Moreover, directors will be better protected against accusations of misconduct, as they have taken the initiative to act in the best interests of creditors.

As with any method of closing a company, directors must inform their fellow shareholders, if applicable, and HMRC of their decision to close. Failing to do so can cause serious issues, especially for a company in significant amounts of debt.

Clarke Bell can help

Closing a company is a significant endeavour. Not only does it mark a sweeping change in a director’s career and personal life, but it also presents a considerable administrative workload. While it is possible to close a company personally, it is exceedingly risky to do so without proper expert assistance. That’s where we come in.

Clarke Bell can be there to help you close down your business when the time comes.

We have more than 29 years of experience in helping companies to close down, and we can do the same for you.

Contact us today for free advice on the best way to close your company.

Receiving a statutory demand can be a nasty surprise. It can be seen as a final warning to directors to repay an outstanding debt, and clearly marks a creditor’s intentions. Should the statutory demand go unpaid, the creditor will likely escalate the issue by submitting a winding-up petition. This will involve the courts, giving them the final say over the debtor’s future. In many cases, this results in a winding-up order and the compulsory liquidation of a company.

While being served a statutory demand is certainly never good, it isn’t necessarily the end of your company. There are ways to respond, though time is of the essence.

In this article, Clarke Bell will break down statutory demands, what they mean for you, and how you can respond. We will also discuss how to deal with insurmountable debts of a company, once and for all, with a process called a Creditors’ Voluntary Liquidation (CVL).

What is a statutory demand?

Statutory demands can be seen as a prelude to a winding-up petition. Creditors will typically serve a statutory demand first, which functions both as a last chance to a debtor, and to collect legal evidence of the debt’s existence. This evidence will be helpful in the event that the creditor must petition the courts to help recover the debt.

Once a debtor receives a statutory demand, they will have 21 days in which to comply. This usually involves either repaying the debt in full, or negotiating a new agreement with the creditor. If neither of these outcomes is achieved, the creditor can escalate the issue using a winding-up petition. Typically, creditors can serve a statutory demand to debtors when they have an outstanding debt with them above £750.

Who can issue a statutory demand?

Creditors who meet a specific set of criteria can issue a winding-up petition after attempting other debt recovery methods. Typically, creditors will consider a statutory demand after attempting contact with the debtor, sending payment reminders, and even turning to bailiffs. Assuming debt recovery methods such as these have been tried and failed, a statutory demand could be an option, provided specific criteria are met.

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Eligibility criteria for issuing a statutory demand

Creditors must meet a set of criteria before issuing a statutory demand. These criteria are outlined in the Insolvency Act 1986, and are as follows:

  • The debtor must owe a debt of at least £750.
  • The debt must not be in dispute.
  • The creditor must not owe a debt to the debtor. This is usually relevant to stock suppliers and other such creditors, as opposed to a traditional creditor such as a bank.
  • There is no existing repayment agreement in action.
  • The statutory demand must be issued correctly using the appropriate forms. If a creditor fails to follow the proper procedure, the statutory demand will likely be set aside.

Results of a statutory demand if you do not respond

Failing to respond to a statutory demand that has been appropriately issued can be disastrous for your company, and can even have knock-on effects on your career as a director. As the time frame of a statutory demand is only 21 days, mounting an effective response can be difficult, but swift action is a must. Failing to respond appropriately within this time frame, or neglecting to respond at all, will likely cause significant problems.

By ignoring a statutory demand, an official record is created of the debt’s existence, and the debtor’s failure to repay. This makes the debt seem “real” in the eyes of the law, and allows a creditor to serve a winding-up petition. Once a petition is served, a notice will be published in the Gazette. This will notify your company’s bank, along with any other outstanding creditors you may have. This can cause a cascading effect, wherein your other creditors prepare their own legal action.

If the first creditor has decided to escalate the issue using a winding-up petition, you will be expected to attend a court hearing to state your case. It is possible that the court then serves your company with a winding-up order, which begins the compulsory liquidation process. At this stage, you will effectively lose control over your company, and an Official Receiver will be appointed to carry out the liquidation of your company. Furthermore, an investigation will be opened into your company’s finances and your conduct as a director, which could lead to additional consequences of a financial and legal nature, if any wrongdoings are identified. As such, it is best to act swiftly if you even suspect your creditor to be considering a statutory demand.

How you can respond to a statutory demand

Statutory demands are a serious warning sign for a company, but it isn’t necessarily the end of the line. There are two main options available to you, apart from letting your company go into compulsory liquidation. You can dispute the statutory demand or put the company into Creditors’ Voluntary Liquidation (CVL).

Disputing a statutory demand

Disputing a statutory demand is an option when creditors submit a demand in error. This could mean anything from intentionally falsifying information to incorrectly following procedure. If you have evidence that your creditor’s statutory demand is in some way not legitimate, opening a legal dispute could be a good solution. This can have a statutory demand be set aside, and can give your company some breathing space. However, you must not frivolously dispute a statutory demand. Doing so can result in serious legal consequences for you and your company, and is likely to do much more harm than good.

Creditors’ Voluntary Liquidation

Another available option is a Creditors’ Voluntary Liquidation (CVL). This is a popular solution for directors of an insolvent company – i.e. one which cannot pay its debts.

To put your company into a CVL, you will need to appoint a licensed insolvency practitioner (like Clarke Bell). Your company will be formally closed down / liquidated; and, if there are sufficient funds, your creditors repaid.

Once a company is entered into the CVL procedure, this stops any action being taken by any bailiffs. That will give the company’s directors a great deal of comfort. Creditors can still submit a statutory demand or a winding-up petition, so it is important to move as quickly as possible to get the company into liquidation.

For more details about CVLs, read our complete guide to the process.

Clarke Bell can help you

Statutory demands make clear the intentions of outstanding creditors, and their desire to get paid what they are owed.

If your company is not in a position to pay its debts, Clarke Bell can help you.

We have more than 29 years of helping companies reach the best possible solutions in difficult situations, and we can do the same for you.

Contact us today, for free, and find out how we can help you.

County Court Judgements, or CCJs, can be issued by a company’s creditors as a means of debt collection. They can be quite detrimental to a company, both in terms of reputational damage and additional difficulty in creating future business relationships. For these reasons, it is worth making sure that your company does not have a CCJ against it.

Generally, company directors will be contacted before and after a CCJ is issued. While this tends to keep directors in the loop, it is entirely possible that the news never reaches directors. This could be the fault of either party, or purely a mistake. So, if you haven’t been notified, how do you know if your company has a CCJ?

In this article, Clarke Bell will discuss CCJs, how you can find out if your company has one against it, why you might want to check and what to do if your company cannot pay back its debts.

What is a CCJ?

A CCJ is a legal document issued by a court to a company on behalf of a creditor. This document acts as a formal order to repay the specified creditor within a specific time frame. Creditors can apply for a CCJ at their leisure, provided they meet the eligibility criteria and follow the procedure correctly.

If the courts approve of your creditor’s claim, then your company will be issued the CCJ. This document will have all the necessary information relevant to your case, including dates, amounts payable, and the creditors that made the application. If you do receive any communications related to a CCJ, it is vital that you place it in safekeeping.

Once you have received a CCJ, you will have a number of potential responses. These include:

  • paying the specified amount in full
  • reaching an agreement with your creditor
  • disputing the CCJ in court

These responses have a time frame that begins upon the receipt of the CCJ. As such, you must act immediately upon receiving a CCJ. If you suspect your creditors may wish to pursue a CCJ, yet have not received any communications, then you might consider checking your company’s records.

How to see if your company has a CCJ

Checking to see if your company has a CCJ is quite easy. You can do so via one of two methods:

  1. you can search for your company on the TrustOnline database. This database holds a range of valuable information, including whether your company has an outstanding CCJ against it or not. Anyone can do this for a small fee of £10 for all registers. Once you’ve paid the fee, you can check a range of registers to see what information they hold regarding your company.
  2. There are a range of private organisations that offer the same ability to check databases for a fee, but also notify their users when CCJs are registered against their companies. This can help directors respond more quickly to the registering of a CCJ, but require the creation of an account and a fee.

Also Read: How Long Does a CCJ Last?

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Clarke Bell have been liquidating companies since 1994

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Why should I check to see if my company has a CCJ?

No matter how you choose to check if your company has a CCJ, it is a good idea to do so. A CCJ can have a substantial effect on your company, especially if it is left unresolved. While you might be served with documentation regarding a CCJ, it can be wise to err on the side of safety. Checking to see whether your company has a CCJ registered against it can help you avoid the consequences described below.

The effects of a CCJ on a limited company

A CCJ can significantly affect your company, both while it’s outstanding and after it expires. By checking if your company has a CCJ registered against it, you can react swiftly, and stand a much better chance of mitigating the damage. There are a multitude of possible effects, though we will focus on some of the more common.

Reputational damage

Reputational damage is a fast-acting consequence of a CCJ. Databases and registries are available to the public, not just fellow directors or creditors. Should anyone wish, they can pay a fee to search your company in one of these registries and see if your company has a CCJ. Naturally, a registered CCJ against a company can cultivate a negative public perception. While this is bad enough, it can worsen if prospective business partners, suppliers, or creditors spot a CCJ.

Difficulty in forging future business relationships

If prospective creditors, stock or equipment suppliers, and suchlike find evidence of a CCJ, then it could prove to be an obstacle. Having a CCJ registered against your company will diminish your negotiating position, and could force you into accepting unfavourable contract terms. This could be anything from accepting a higher interest rate, to losing out on certain options. Some creditors and suppliers will refuse to work with a company outright if they find evidence of a CCJ.

Strains cash flow

A CCJ can constrain a company’s cash flow in a couple of ways:

  1. the order to make a possibly substantial repayment is likely to hit a company’s finances hard. As a company with a CCJ may well already be struggling paying its bills, a repayment order may be a heavy strain on its cash flow.
  2. creditors are less likely to approve loan applications from companies with a registered CCJ. This can make additional finance difficult to obtain, resulting in increased pressure on a company’s cash flow.

Also Read: How To Remove a CCJ

Clarke Bell can help you

If you have received a CCJ, and your company cannot pay the debt, we can help you.

Clarke Bell have more than 29 years of experience in helping companies find the best solution to their financial problems. The most popular option for dealing with a company’s debt problems once and for all, is to put the company through a process known as a Creditors’ Voluntary Liquidation (CVL).

If you want to sort out your company’s debt problems, put the whole thing behind you and move on, contact us for free advice.

Companies which are struggling to keep up with their debt repayments are likely to see an increase in the pressure that is applied from their creditors. Creditors are unlikely to leave a missed monthly repayment unaddressed. They will, typically, make some attempt at communication with the company that owes them money. Should this attempt at communication go unanswered, and monthly repayments continue to be missed, then creditors are likely to employ debt collection methods. Amongst these methods is the hiring of bailiffs.

Creditors with an outstanding debt that has gone unpaid may send bailiffs to your company as a means of debt recovery. These bailiffs may seize company-owned assets in lieu of repayment, equal to the outstanding loan value. However, bailiffs have certain rules to follow, and failing to do so can cause serious problems. One such rule is the serving of a bailiff enforcement notice.

In this article, Clarke Bell will discuss the bailiff enforcement notice, what it means for you, and what might come next.

What is a bailiff enforcement notice?

A bailiff enforcement notice is a document that bailiffs must submit in order to pay a company a visit. An enforcement notice can be sent to a company that has repeatedly failed to make repayments, causing creditors to lose faith in voluntary repayment as a possibility. Upon receiving an enforcement notice, it is important to act quickly. Bailiffs will be able to visit your company after seven days, excluding Sundays and public holidays, putting your company’s assets at risk.

What happens if I don’t respond to the notice?

Failing to respond to a bailiff enforcement notice will result in bailiffs paying your company a visit after a seven-day grace period. Bailiffs do not have to visit immediately after this seven-day period has expired, making it a possibility that they will catch you off guard.

If bailiffs visit your company after this seven-day period has elapsed, then they will likely make an attempt to enter the company premises through unlocked doors or windows. If they have a warrant, permission is not required, and entry can be forced. Should this be the case, bailiffs are likely to be accompanied by a police officer.

Once inside your company’s premises, bailiffs are not likely to seize any assets on the first visit. Instead, they will make a formal note of your company’s assets, such as cars or equipment, placing a notice on any assets they intend to seize on subsequent visits. Once marked, you cannot transfer or dispose of an asset. At this stage, there isn’t a lot that can be done by the company. As such, it is best to avoid the situation escalating to this point.

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Can the enforcement notice be invalid?

In some circumstances, an enforcement notice will be considered invalid, removing any authority the bailiffs would have otherwise had. The most common instance of an invalid enforcement notice is one that includes incorrect information.

If your bailiff enforcement notice includes any factual errors, such as the wrong name, address, or an incorrect loan amount, then it will be considered invalid. Likewise, if your enforcement notice has not properly informed you of the seven-day period, or was not properly served to you, then it will also be considered invalid. If your enforcement notice is considered invalid, you can lodge a formal complaint which, if successful, will bar the bailiffs from visiting your company. They will then need to serve another bailiff enforcement notice and give another seven days before they pay you a visit.

While the above is one of the most common circumstances, an enforcement notice can be considered invalid in other ways. Namely, if bailiffs visit your company before the seven-day period expires, then you may lodge a formal complaint, removing their authority over your company. Any assets marked for seizure will not be eligible for removal, and another enforcement notice will be required. Lastly, an enforcement notice served by debt collectors is all but powerless, as debt collectors do not operate with the backing of a court.

What can bailiffs do if the enforcement notice is valid?

If your bailiff enforcement notice is valid, bailiffs can take action after seven days of the notice’s serving, excluding Sundays and public holidays. After this time period, they will be able to visit your company and attempt to seize assets.

When seizing assets as a form of repayment, bailiffs will generally target a small quantity of high-value assets. This usually means that bailiffs will target company vehicles, machinery, heavy equipment, valuable stock, and so on. Bailiffs will generally avoid seizing large quantities of low-value assets, though they will do so if no other alternatives are available. Assets will continue to be marked for seizure until the total asset value matches the value of the outstanding loan.

Responding to a bailiff enforcement notice

If you have received a bailiff enforcement notice, mounting a quick response is vital. Your responses can include the following methods:

  • Repay the loan in full.
  • Reach a repayment agreement with your creditor. This can be arranged through the bailiffs, or directly with your creditor using a Company Voluntary Arrangement.
  • Check that the particulars of the notice are correct. While somewhat uncommon, it is possible that you received an enforcement notice meant for someone else.
  • Dispute the enforcement notice, if you spot any factual errors.
  • Appoint an insolvency practitioner (like Clarke Bell) to help you find and implement insolvency procedures as a solution to company debt problems.

Clarke Bell can help

If you have received a bailiff enforcement notice, and you want to discuss the option of putting your company through an insolvency procedure, we can help you. Clarke Bell have more than 29 years of experience in helping company directors to find the best solution to their financial problems. The most common option is to place the company through a process called Creditors’ Voluntary Liquidation (CVL).

Contact us today for your free advice to see if a CVL is the best option for you and your company.

Winding down operations can sometimes be the best move for a company and its directors. Doing so is often the natural course of a business, affording directors the opportunity to retire, pursue other ventures, or re-enter the workforce in a salaried position. Closing can also be the best course of action for companies that have seen their profits decline, or have even entered a state of insolvency. Regardless of the reason, any director looking to close their company will want to keep costs low where possible. For this reason, directors should consider whether they must pay tax when closing their company, and if so, whether the bill can be reduced.

In this article, Clarke Bell will discuss taxes as they relate to closing a limited company, the cases where tax may be applied, and what you can do to ensure tax efficiency.

(*Clarke Bell are not tax experts. You should speak to a tax expert about your taxes.) 

Will I always pay taxes when closing a company?

When closing a company, tax is often applied when shareholders profit from the procedure. For example, when assets belonging to the company are sold, or cash accounts are drained, the proceeds will be distributed amongst shareholders if the company is solvent. The proceeds will then be taxed, with the exact percentage depending on certain factors.

However, not every company looking to close is solvent. When closed, any funds extracted from these insolvent companies will be distributed amongst creditors, rather than shareholders. In these scenarios, shareholders are not likely to receive much, if anything. As such, shareholders are not likely to be taxed when closing or liquidating an insolvent company, though certain costs may still be incurred depending on certain factors.

What tax do I pay when closing via Members’ Voluntary Liquidation?

Members’ Voluntary Liquidation is a procedure commonly used by directors of solvent companies. It is an HMRC-approved way for closing down a company, allowing for the efficient liquidation of a company and the distribution of its profits, and is one that is especially well-suited to companies with assets over about £25,000. Such companies can make better use of the benefits provided by the MVL procedure, making it easier to justify the costs involved.

As the MVL procedure aims to liquidate assets and distribute the profits to shareholders, including directors, tax is necessarily involved. However, the tax imposed on gains made during an MVL is comparatively less than under other procedures, and shareholders can take certain measures to further reduce the overall tax burden. Namely, shareholders may apply for Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief.

If applicable, this relief can result in shareholders greatly reducing their tax bill at the end of an MVL, assuming they hold at least 5% of the company’s shares and are entitled to at least 5% of the proceeds raised during liquidation. If these criteria are met, shareholders may apply for BADR on their Self-Assessment form. Once applied, BADR can reduce a shareholder’s tax bill down to as little as 10%, if done in conjunction with the MVL procedure. Note that BADR has a lifetime limit of £1 million, and can only be applied to gains at or below this limit.

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What tax do I pay when closing via company dissolution?

Closing a company via dissolution is a viable and commonly utilised alternative to Members’ Voluntary Liquidation. This procedure lacks the same tax benefits afforded by an MVL, but it can be very cost-effective. Directors can initiate a company dissolution once they have the consent of the board, and have submitted the DS01 form. This form can be submitted at a small fee of £10 in paper format, or £8 online. After having done so, directors must post a notice in the Gazette to ensure all related parties are properly notified of the upcoming dissolution.

Assuming no objections to the upcoming dissolution are made, you will be able to transfer or liquidate assets, empty accounts, and formally close the company. Note that all assets should be removed from company ownership before the company is closed. Any assets that remain once the company is removed from the register will be considered “bona vacantia”, or without owner, and transferred to the Crown.

By closing your company via company dissolution, any gains will be taxed under Income Tax rates, rather than Capital Gains Tax rates. As such, these gains will be subject to a larger percentage of tax, potentially leading to a larger tax bill overall. However, while shareholders might be paying a higher percentage of tax, the low cost of the procedure may lead to lower overall costs, especially for companies with fewer assets.

What tax do I pay when closing via Creditors’ Voluntary Liquidation?

Creditors’ Voluntary Liquidation (CVL) is available to directors looking to close their insolvent company (i.e. one which cannot pay its debts). It affords directors a reliable framework with which to close their company, while still upholding their obligations as directors. Once the board agrees to place the company into the CVL procedure, directors may appoint a licensed insolvency practitioner of their choosing (like Clarke Bell). This insolvency practitioner will assume the role of liquidator, essentially superseding the authority of directors in order to properly carry out the CVL procedure.

Once in this position, the liquidator will dispose of company assets, empty accounts, and collect any other funds the company may have. The proceeds of doing so will be distributed amongst outstanding creditors according to a repayment hierarchy. Once all possible payments have been made, the company will be wound up and removed from the Companies House register. If any debts remain at this stage, they will be written off. For a more detailed look at the CVL procedure, read our complete guide to the process.

As Creditors’ Voluntary Liquidation is a procedure for insolvent companies, meaning it results in no profits for shareholders, directors will not have to pay taxes in most scenarios. In fact, it is entirely possible that tax arrears owed by the company are written off if such debts cannot be repaid. That said, if your company is insolvent and in tax arrears, it is vital you act swiftly to avoid the situation from being taken out of your hands.

Clarke Bell can help

Closing a company is a common, yet strenuous, endeavour. Regardless of procedure, it requires a strict adherence to protocol and the law, with even small infractions holding the potential for severe legal consequences. Moreover, any director would wish to keep costs low, and utilise tax-efficient methods where possible. Clarke Bell can help you in both of these areas.

Clarke Bell has more than 29 years of experience in helping companies close using the most effective methods possible, and ensuring shareholders reach the best outcomes available. We can do the same for you.

Don’t hesitate to contact us today for a free, no-obligation consultation and find out exactly what we can do for you.

Receiving a statutory demand can be quite a shock to directors. If you have received one, you need to do something about it, and fast.

Statutory demands can lead to a company’s creditors taking serious action, often culminating in a winding-up petition and forcing the end of the company. A response must be given within 18 to 21 days of receiving a statutory demand. The gravity of a statutory demand, coupled with the relatively brief window for a response, can leave directors feeling unsure of what to do. However, while statutory demands are certainly serious, they do not necessarily pose a hopeless situation.

In this article, Clarke Bell will offer company directors advice on how to handle a statutory demand, including a breakdown of what the document is, its potential effects on a limited company, and what you can do in response.

What is a statutory demand?

A statutory demand is a formal, written ultimatum for debt repayment given to a company by its creditors. The statutory demand details the debt or debts in question, including amounts payable, outstanding creditors, and other pertinent information. Once received, the company has to make a decision:

  • pay the debt in full
  • reach an agreement with the specified creditors
  • contest the statutory demand in court
  • pursue insolvency procedures.

Ignoring a statutory demand is not a good option, as it can result in creditors forcing your hand and taking control over the situation. In a worst-case scenario, you risk losing your company to compulsory liquidation.

How can a statutory demand affect a company?

Statutory demands typically show just how willing creditors are to collect a debt. They mark a significant step up from a simple letter or phone call, and usually precede a creditor pursuing further action should the statutory demand not be adhered to. This threat is essentially the main effect of a statutory demand.

Should a company receive a statutory demand, it has 18 days to contest it in court, or 21 days to adhere to the demands. If directors fail to meet either deadline, then the statutory demand will be considered ignored. This makes creditors eligible to take further action, such as submitting a winding-up petition. A winding-up petition is a significant escalation from a statutory demand, as it can result in the company being forced into compulsory liquidation.

When might creditors submit a statutory demand?

Statutory demands are not typically the first option considered by creditors. This is because they can be time-consuming and require a fee to be paid, and there is no guarantee that a creditor will recover their debt with this process. Instead, most creditors will pursue other debt recovery methods before escalating the situation. Creditors will usually contact company directors as a first port of call, with formal notices marking the next step if creditors cannot establish contact. Should these approaches fail to bear fruit, some creditors will turn to debt collectors, while others will pursue other avenues. Statutory demands tend to be one of the last options considered by creditors.

While a statutory demand can lead to a company making a full repayment to its creditors, many others will not have enough money to do so. As such, statutory demands are almost always submitted by creditors who are willing to ‘go the distance’. So, they should be treated seriously.

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What options do directors have?

Statutory demands can pose a serious threat to the longevity of a company. They clearly show the intentions of creditors, and can easily lead to a company being forcefully shut down if mishandled. However, statutory demands do not mean a company’s closure is a foregone conclusion. Depending on the circumstances, directors have several options available to respond to a statutory demand.

Pay the statutory demand in full

Occasionally, a statutory demand will be issued to companies who can pay their debts, but haven’t for one reason or another. This could be due to an honest mistake on behalf of directors, or due to the impatience of creditors. In any case, if your company can pay its statutory demand, you may do so within 21 days of receiving the notice.

Reach an agreement with creditors

In the event that your company cannot pay its statutory demand immediately, but will be able to do so over a longer timeframe, you may consider negotiating with your creditors. To do so, your company must have a viable business model, one capable of lasting well into the future despite its current problems.

You may also consider appointing a licensed insolvency practitioner to enact a Company Voluntary Arrangement (CVA). This procedure, as negotiated by the insolvency practitioner, will aim to reach a new agreement that benefits both the company and its creditors. Ideally, the company will have the immediate pressure on its finances relieved, while its creditors will receive a full repayment over the course of the CVA…typically five years.

Contest the statutory demand in court

In some cases, a statutory demand will be filed in error. This error could be that it was delivered to the wrong company or for an incorrect sum.

If you have evidence that your statutory demand has been filed improperly, you may take the issue to the courts and have it set aside. You should avoid making a frivolous appeal, as the courts may well apply a penalty to you for doing so.

Consider insolvency procedures

If the statutory demand is both legitimate and unpayable, you may be best served looking to insolvency procedures for a solution. A Creditors’ Voluntary Liquidation (CVL) is often the best option. This procedure aims to provide insolvent companies, i.e. those that cannot repay their debts as they come due, with a way of dealing with their company’s debt problems once and for all.

A CVL allows directors to appoint a licensed insolvency practitioner as the liquidator of their company. Once in this position, the liquidator will take the reins of the company, selling off any assets and distributing any proceeds amongst outstanding creditors. In doing so, the CVL procedure ensures that directors reach a solution to their debt problems, while still upholding their obligations to outstanding creditors.

Clarke Bell can help

Statutory demands are a severe problem for any company. If left unchecked, they can result in a company being closed against its directors’ will, with any assets being sold off to repay its debts. This constitutes a worst-case scenario for most companies, though all hope is not lost. Directors have a range of options at their disposal to deal with a statutory demand. Clarke Bell can be there to help you find the best one.

We have more than 29 years of experience in helping companies solve their financial problems, through business rescue, insolvency procedures, or otherwise. We can do the same for you.

Contact us today for a free, no-obligation consultation to find out how we can help you.

Most companies will encounter a few hiccups during their lifetimes. Some may face a decline in traffic and sales, others may experience a poor product launch, while others still may encounter debt-related problems. While some of these issues can be dealt with somewhat easily, others will prove difficult to overcome. In the latter case, these problems can combine and pose a serious threat to the longevity of a company. In this scenario, a company may wish to implement a restructuring plan to get back on track.

But what exactly is a restructuring plan, and how can it be of use to a struggling company?

In this article, Clarke Bell will answer these questions, cover a company’s options for restructuring, and how a company can implement such a plan.

What is a restructuring plan?

A restructuring plan is simply an identified means of solving a company’s financial and management problems. A plan to restructure a company has several aims, depending on the circumstances of the company in question. Generally, a restructuring plan identifies the main issues faced by a company, then puts forward solutions tailored to the company’s needs. Potential solutions can include a change in leadership, splitting and partial sale of a company, or downsizing of a company’s premises or workforce. A licensed insolvency practitioner can help you with these potential solutions.

Restructuring plans are also outlined in the Corporate Insolvency and Governance Act 2020, which itself falls under the Companies Act 2006. Restructuring under this act affords companies a level of flexibility they could not achieve through other insolvency procedures, and can be approved by the courts to prevent creditor interference.

What are the options for restructuring?

To be effective, a restructuring plan must be tailored to an individual company’s situation and requirements. As such, there are a variety of solutions that may be packaged into a given company’s restructuring plan. To enact a restructuring plan for an insolvent company, directors can make use of the Corporate Insolvency and Governance Act 2020, allowing them to draft a restructuring plan. This plan will be put before the courts, which will decide whether the company may implement the plan or if other actions are more appropriate. In essence, this aims to stop insolvent companies with no hope of recovery from abusing the restructuring process.

Should the courts accept a company’s restructuring plan, its creditors will be prevented from taking legal action against it, and the plan can begin implementation.

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Company Voluntary Arrangement

A restructuring plan can take several forms depending on the needs of the company in question. Some companies might only require small measures, such as the brokering of a new agreement with its creditors. In such an instance, an insolvency practitioner can be brought in to help facilitate negotiations with creditors under a Company Voluntary Arrangement (CVA), reaching an agreement that lessens the financial pressure on a company, while also ensuring creditors are repaid in full.

In more complex cases, a company may instead benefit from the sale of some of its assets, and possibly even the closing of unprofitable sectors of the company. An insolvency practitioner will be brought on board to help secure as high value sales as possible, allowing the company to procure funds quickly to get it back on track.

Similarly, seeking out additional investment is a third potential method for a company undergoing restructuring. Assuming the company in question has a viable business model, it may be viewed as an appealing prospect for external investment, especially from investors with ideas on how to properly realise the company’s potential.

Companies implementing a restructuring plan may use any of these methods, a combination of multiple, and possibly additional options we have not mentioned here.

Also Read: When Should a Company Use a Business Rescue Plan?

Eligibility criteria for a restructuring plan

Like any formal insolvency procedure, a company must meet certain eligibility criteria to qualify for a restructuring plan. However, unlike some other procedures, these eligibility criteria are few in number and easy enough to meet for any company that would make use of a restructuring plan.

Firstly, a company must have encountered financial difficulty, or expect to encounter difficulty in the near future, and must want to reverse course. Secondly, a company seeking to use a restructuring plan must use its proposed plan explicitly to improve the company’s situation. In other words, a company’s directors cannot take on investment funds as part of their restructuring plan, only to pay out increased dividends to directors and shareholders. Misusing funds raised through a restructuring plan, or taking advantage of such a plan for any reason other than improving a company’s financial situation can result in legal action against directors. Lastly, to make use of a restructuring plan in the UK, a company must either be based in the country, or have sufficient connections in order to be eligible.

Benefits of using a restructuring plan

Using a restructuring plan comes with a variety of benefits. Most notably, it allows a struggling company to reverse course and attain profitability. However, restructuring plans have a few other benefits. It can open the doors to additional investment capital, reduce the amount of pressure exercised by creditors, can be used to organise a company into a more sustainable model, and even be used to spot upcoming problems in advance, allowing them to be addressed before they have a chance to do damage. These benefits make restructuring a very versatile tool, one able to help both companies on the brink of financial ruin, and those that just need a little helping hand.

Let Clarke Bell help

Restructuring plans can be an invaluable tool for a struggling limited company. They can help restore a company to profitability, through a variety of means tailored to the needs of the company in question. However, restructuring plans need to be implemented in time, and by a practised hand, for them to be truly effective. Clarke Bell can help you with this task.

We have more than 29 years of experience in helping struggling companies find the path back to profitability. We can do the same for you. Our team of experts can help you find the best possible solutions to your company’s problems, or explore other insolvency procedures if appropriate.

Don’t hesitate to contact us today for a free, no-obligation consultation and find out exactly what we can do for you.

A County Court Judgement, or CCJ, is an effective method of debt recovery available to creditors. It can be used when a company cannot, or will not, make repayments in accordance with a credit agreement. Creditors of such companies can apply for a CCJ, involving the courts in the debt collection process.

However, not all creditors can apply for a CCJ. There is an eligibility criteria that must be met, with one of the most important factors being time.

In this article, Clarke Bell will cover how long does a CCJ last, discuss the CCJ process as a whole, and look at how it can affect your company. We will also discuss how to deal with the debts of a company once and for all, with a process called a Creditors’ Voluntary Liquidation (CVL).

What is a CCJ?

A CCJ is a legal document that presents a strong option for creditors looking to recover a debt. It allows creditors to bring their case to the courts, and possibly rely on the court’s authority to compel a debtor to repay. If the court agrees with the claim, then a CCJ will be issued to the debtor.

Should a CCJ be submitted to a company, directors will receive a set of information regarding the particulars of their case. This will include the creditors that applied for a CCJ, owed amounts and relevant dates. At this stage, the company must either pay the amount specified, reach an agreement with creditors, or contest the CCJ in court.

Ignoring the CCJ should not be done, as it will likely result in further action being taken by creditors, and potentially result in legal penalties.

Applying for a CCJ

Creditors can apply for a CCJ, provided they meet specific eligibility criteria. First and foremost, a debtor must have violated their credit agreement in some way. This typically refers to companies that fall behind on payments due to cash flow problems. As this presents a breach of the agreement to make timely repayments, it entitles creditors to apply for a CCJ. In addition to this, the next essential requirement revolves around time.

Time restrictions for serving a CCJ

Although a breach of a credit agreement is critical to qualify for a CCJ, the time frame of an application is even more so. As specified in the Limitation Act 1980, creditors can only pursue a CCJ within six years of a court order. If a creditor receives approval from a court to act, but fails to do so within six years, then they must re-apply before taking any action. Taking enforcement action without the approval of the courts can result in legal consequences for creditors, even if the debt would be enforceable with court approval.

Effects of a CCJ on a company

A CCJ can have serious effects on a company.

Receiving a CCJ is an order for debt repayment or striking a new agreement with creditors. It will often add further strain to a company’s finances – sometimes making the company insolvent (i.e. unable to pay all of its debts). Ignoring a CCJ will have further, more severe consequences, and so should not be considered as an option.

Another effect is the potential damage to future business relationships. Information regarding a company’s CCJ is publicly accessible via the Register of Judgements, Orders, and Fines, for a small fee. This database contains most of the particulars regarding a company’s CCJ, including the total fee and how long it took to repay. This can cause parties, like future creditors and stock suppliers, to insist on certain terms in their contracts that may be unfavourable to your company. Some individuals and organisations may even refuse to work with your company outright if they see a CCJ on your company’s records.

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How long does a CCJ last on a company’s records?

Once on your record, a CCJ will be visible to the public for six years from the date of the judgement. However, there are ways for a CCJ to be removed from your company’s records.

Can a CCJ be removed from my company’s records?

Although a CCJ can be an issue for a company once added to its records, they are temporary and can be removed. Your options for removal will vary depending on your company’s circumstances, and are as follows:

  • If you have paid the debt the CCJ relates to within 4 weeks of the CCJ being issued, the company which placed the CCJ can have it removed, if you make such request to them.
  • If the liability was paid after 4 weeks of the CCJ being issued, you will need to apply to Court to have this removed. You can apply to Court yourself. However, you may prefer to seek legal assistance in this respect.
  • Six years have passed since the serving of the CCJ. At this point, the CCJ will be removed from your company’s records automatically.
  • Another entity, such as an insurance company, is responsible for the debt.
  • The CCJ had inaccurate information or was otherwise illegitimate, and you made a successful dispute. This will see the CCJ set aside, and will have it removed from your company’s records if it was already added.

Any of these methods will result in the removal of a CCJ from your company’s records. Note that in the case of a dispute, it is vital that you only consider this option if you have reason to believe the CCJ was filed improperly. Submitting a legal dispute without any valid reason to do so is likely to backfire, possibly resulting in additional problems for you and your company.

How to deal with the debts of a company once and for all

If your company cannot repay the debts associated with a CCJ, a common option is to place the company into Creditors’ Voluntary Liquidation (CVL). This is a formal insolvency procedure that helps financially struggling companies to deal with their debts and close down. This option enables directors to deal with the company debts and their legal obligations, and move on with their lives.

As a CVL is a voluntary form of liquidation, it entitles directors to appoint an insolvency practitioner (like Clarke Bell) to carry out the liquidation procedure.

For a more in-depth look at this option for dealing with your company’s debt problems, look at our CVL guide.

If your company has received a CCJ and cannot pay the debt, using the CVL procedure is often the best solution. By closing their company with a CVL, directors can stop the issue from spiralling, while ensuring both they and creditors reach the most favourable possible outcome.

Let Clarke Bell help you

If you have received a CCJ and you are unable to pay the debt it relates to, you need to take action now – before things get worse for you.

Clarke Bell have more than 29 years of experience in helping directors to find the best solutions to their company’s financial problems. We can do the same for you.

Contact us today for a free, no-obligation consultation.

If your company has fallen behind on debt repayments, receiving a letter from the bailiffs is a distinct possibility. This is especially true for companies with aggressive creditors. A notice of enforcement indicates an impending visit from the bailiffs, who will attempt to seize your company’s assets as a form of repayment. While it is certainly difficult to receive such a notice positively, you shouldn’t panic.

Directors have a variety of options available to resolve a debt with the bailiffs, even if your situation looks hopeless on the surface.

In this article, Clarke Bell discusses the role of bailiffs, how they can impact your company, and what you can do to reach a favourable outcome.

What is a bailiff?

Bailiffs, commonly referred to as enforcement agents, are individuals who work to collect debts, usually by appointment of a court. Debt commonly collected by bailiffs includes County Court Judgments, tax arrears, criminal fines, and awards from civil court hearings.

As these debts have been heard in court already and are not simply unresolved disputes between two parties, bailiffs are much more of a threat to companies. Bailiffs operate with the backing of the courts, granting them more authority compared to other debt collection agents.

What can bailiffs do to a company?

As they work at the behest of the courts, bailiffs are able to take a more forceful approach to debt collection. While this authority allows bailiffs to take a range of actions, there are two key actions directors should be aware of: entering property and taking assets.

Can bailiffs force entry?

Depending on the circumstances, bailiffs can force an entry into your company’s premises. A forceful entry can be attempted if they have a warrant, or are collecting a criminal debt. These situations essentially remove any right to turn bailiffs away, and can result in legal action should company owners attempt to force bailiffs out. However, company owners are still entitled to ask to see the warrant, the bailiff’s identification, and ask questions related to the debt.

If you are not present when bailiffs arrive at your company’s premises, they may attempt a “peaceful entry”. This kind of entry requires an unlocked door or window, allowing bailiffs to gain entry without using force, coercion, or possessing a warrant. A “peaceful entry” allows bailiffs to make a note of company assets that can be seized at a later date. If you receive an enforcement notice from bailiffs, it is best to either solve the issue before they arrive, or ensure you are present when they visit your company.

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What can bailiffs take?

Once bailiffs have gained entry into a company’s premises, they may begin listing assets for seizure on subsequent visits. Eligible assets include most assets typically owned by a company, ranging from vehicles to equipment, and even stock. However, bailiffs will generally prefer to take assets that are not crucial to a company’s operations, avoiding any unnecessary harm. If the debt is not repaid, then bailiffs will seize assets equivalent to the outstanding loan.

How can directors resolve a debt with the bailiffs?

Receiving a letter from the bailiffs is certainly concerning, but it isn’t necessarily the end of the line for a company. Directors have a number of ways to respond to contact from the bailiffs, ranging from negotiation to insolvency procedures. The following are some of the most commonly used methods of resolving a debt with the bailiffs.

Making a full repayment

Where possible, the simplest solution is to make a full repayment of the debt that is owed. Bailiffs aren’t focused on seizing your company’s assets; they simply want to collect a debt on behalf of their client. While that can come in the form of assets, bailiffs will be more than happy to facilitate the repayment of the debt, either directly with your creditor, or via the bailiffs themselves.

Negotiating with bailiffs

If a full repayment cannot be made, but your company is still solvent and viable in the long term, you may be able to negotiate a repayment agreement. Assuming you are present when the bailiffs visit, negotiating with them is entirely possible. Again, bailiffs are primarily concerned with collecting a debt, and are often willing to negotiate if it can help achieve this aim.

Company Voluntary Arrangement

If bailiffs are not willing to negotiate, or you would prefer to communicate with your creditor directly, you may want to consider a Company Voluntary Arrangement (CVA). A CVA is essentially a revised repayment agreement, allowing companies to put forward a reasonable new repayment agreement that benefits both parties. Ideally, a CVA will buy a company some time, while still ensuring creditors get what they’re owed in the end. In order for a CVA to be an option, your company will need to have a viable business model and agreeable creditors.

Creditors’ Voluntary Liquidation

Creditors’ Voluntary Liquidation (CVL) can be a great solution for insolvent companies that cannot repay the debt in question. Rather than allowing bailiffs to seize assets, likely causing the situation to spiral, a CVL grants companies a reliable means of handling all their debt problems.

Directors begin the procedure by discussing their case with an insolvency practitioner (like Clarke Bell). Having heard their professional advice, the directors will then appointing an insolvency practitioner of their choosing to the role of liquidator. While in this role, the insolvency practitioner will assume control over the company, ensuring all assets are liquidated as efficiently as possible, and that the proceeds are distributed amongst outstanding creditors. Once all distributions have been made, the company will be wound up and removed from the Companies House register. After this point, any remaining debts will be written off, except those secured by a personal guarantee.

For more information regarding CVLs and their benefits, read our complete guide to the procedure.

Let Clarke Bell help

Receiving a letter from the bailiffs can be a serious problem. If left unchecked, it can quickly mean the seizure of your company’s assets, potentially causing damage to your company’s normal operations. However, there are options available to directors, no matter how dire the situation may seem.

Clarke Bell can help you find the best option for your company.

We have more than 29 years of experience in helping companies solve their financial issues. We can do the same for you. Our team of experts can help you identify and implement the best solution to your company’s financial problems. The best option is normally a Creditors’ Voluntary Liquidation. However, is this is not right for you, we will tell you what is.

Contact us today for your free, no-obligation consultation and find out exactly what we can do for you.