Our insolvency solicitors in Birmingham can represent you in the liquidation process of the company you own. The procedures can thus be simplified by having a team of experts at hand to guide you. We advise you to read the following lines and discover some important information about insolvency and the support offered by our specialists in Birmingham.
| Quick Facts | |
|---|---|
| When are insolvency solicitors needed in Birmingham? |
When the company becomes insolvent and can no longer pay its debts. Liquidation procedures can be explained by our insolvency solicitors in Birmingham. |
|
Legislation |
Insolvency Law |
|
Types of company liquidation |
Voluntary or compulsory |
| When is a voluntary liquidation of a company recommended? | When the business owner wants to close the activities/operations. Debts are paid first. |
| When is the compulsory liquidation mandatory? |
When the company is obliged to sell its assets and pay its existing debts. Activities can be closed if there are no more financial possibilities. |
| Who can declare a company insolvent? |
The directors and business owners after a meeting decision regarding the future of the firm. |
| Appointing a liquidator |
In charge of analyzing company documents and debts, recommending solutions to sell assets to pay debts, among others. |
| Selling company assets |
Mandatory to pay debts before winding up the company |
| Negotiating payment terms |
Can be an optimal solution before insolvency. Our Birmingham lawyers can represent you in this endeavor. |
| Technical expertise in insolvency cases (YES/NO) | YES |
| Is a creditor repayment arrangement useful? |
Yes, if the company in question tries to pay its debts and avoid insolvency. |
| What is a Company Voluntary Agreement (CVA)? |
An agreement between a company and its creditors through which a repayment plan can be settled. |
| Can business insurance protect a company from insolvency? |
Depending on agreed terms and conditions |
| When is a company considered closed? |
When all creditors are paid and the Companies House is notified of the liquidation process. |
| Assistance offered by our insolvency lawyers in Birmingham |
For: – document preparation, – company restructuring, – legal advice for asset distribution and/or debt payment, – representation in the court of law, and many more. |
Table of Contents
About the voluntary company liquidation in Birmingham
When the owner of a company decides to close the business, this situation might imply a voluntary company liquidation. This decision often occurs when the company no longer has the finances to pay its debts and becomes insolvent. In the liquidation process, company assets can be sold to pay off debts, and employees can terminate their employment contracts. It is important to note that the company’s owners and managers are not the ones who have to pay the company’s debts. A liquidator is in charge of selling the assets and ensuring the debts are paid. We recommend that you talk to our solicitors in Birmingham and find out more about voluntary company liquidation.
Liquidation and administration as part of the insolvency process
Both liquidation and administration represent two insolvency procedures that are taken into account when a company ceases to exist due to financial problems. The liquidation process starts with selling the company assets to pay the existing debts. The firm is then closed and erased. As for administration as part of insolvency procedures, this involves the control of a company requesting bankruptcy, with the implementation of certain measures in order to pay debts and continue the activities as much as possible. The entire process is supervised by an administrator.
How can you avoid insolvency litigation?
Instead of entering insolvency litigation and dealing with your company debts in a court of law, you can solicit the legal advice offered by one of our insolvency lawyers in Birmingham. A specialist in this field will know how to create a scheme of arrangement and explain the benefits in cases of company insolvency. Such an agreement will be established between companies and creditors, plus, it will comprise information about how to reduce debts under certain conditions. This is often the choice instead of other restructuring tools. Our team of insolvency solicitors in Birmingham has the necessary negotiation skills. We also invite you to explore the following infographic:
How can our insolvency solicitors in Birmingham help?
Our insolvency solicitors in Birmingham have experience in this field and can be a good option for the complicated process that might commence. Here is in large lines how we can help:
- We can provide support for insolvent or bankrupt companies.
- The company restructuring can enter our attention.
- We can negotiate the repayment agreements with the debtors and creditors.
- If you own shares in an insolvent company, you can get in touch with our lawyers in Birmingham.
- We can provide legal advice for family assets if a company is insolvent.
- The legal advice of our insolvency solicitors in Birmingham is required for company owners who deal with financial problems. Our team can discuss the optimal solutions that can be implemented in your firm.
We can help international clients
Cross-border insolvency matters enter the attention of our lawyers in Birmingham. The full spectrum of insolvency is important to us, no matter if the company owners are domestic or from abroad. Foreign entrepreneurs with companies in the UK must comply with the applicable legislation from the start, still, if financial problems intervene, the case might get complex. The enforcement of judgments can be properly handled by our experienced team of insolvency solicitors in Birmingham.
Statistics on insolvency in the UK
Below are some statistical data about insolvent companies in the UK:
- Around 1,747 insolvent companies were registered in England and Wales in October 2024.
- In the same period, approximately 188 compulsory liquidations were registered from the total of insolvent companies mentioned above.
Legal representation offered by our insolvency lawyers in Birmingham is only part of the services we offer. Our clients can opt for our commercial solicitors in Birmingham, depending on the legal problems encountered. Moreover, our property solicitors in Birmingham can offer assistance to those interested in solving issues linked to real estate. Please consult our conveyancing solicitors in Birmingham for legal advice at any time. Contact our law firm in Birmingham for extra details.
