At this time of year Insolvency practitioners are often faced with calls from directors who need help who liquidate their businesses. Some directors are quite clued up with the process, either having been through the procedure once before or having read extensively about what happens on the net. Others simply haven’t a clue. All they know is that they cannot pay what they are due to various creditors and so need to close the doors on the business.

It matters not to an insolvency expert the level of knowledge that you come to them with they will guide you through the process from start to finish. It obviously helps the Insolvency Practitioner, if he can be provided with all the financial information that the business has from this he will produce the statement of affairs which goes out to the creditors with the notice informing them of the meeting of creditors. It is the statement of affairs which proves to the creditors that the company is insolvent and under the Insolvency legislation should be closed. It must be remembered that the Directors of an insolvent business has a duty to stop trading and incurring any further loses and take steps to formally close the business. (more…)