In many cases, steps can be taken immediately. Once you contact us, we can review your situation quickly and, where appropriate, contact your company’s creditors to request breathing space while options are assessed. The sooner you act, the more options you’re likely to have.

Continuing to trade when a company is insolvent can increase risk for directors. It may expose you to allegations of wrongful trading or other breaches of director duties. Getting advice early helps you understand whether the company is insolvent and what steps you should take to protect yourself and creditors.

If your company can’t pay HMRC, it’s important to act quickly. HMRC has strong enforcement powers and may escalate if arrears are ignored. Depending on your circumstances, you may be able to explore a Time to Pay arrangement, a restructuring solution or a formal insolvency option if the business is no longer viable.

Wrongful trading is when directors continue trading when they knew, or should have known, there was no realistic prospect of avoiding insolvency. You can reduce risk by monitoring cashflow closely, keeping clear records of decisions, avoiding taking further credit you can’t repay and taking professional advice as soon as you suspect insolvency.

Debt restructuring is a way to manage company debts without immediately entering a formal insolvency process. It typically involves negotiating with creditors to make repayments more affordable such as extended payment terms, reduced monthly payments, temporary payment breaks, freezing interest or settlement agreements. The right approach depends on cashflow and whether the business is viable.

A limited company is a separate legal entity, so company debts are not usually your personal responsibility. However, creditors may be able to pursue personal assets if you have signed a personal guarantee, breached your duties as a director, or continued trading when you knew the company could not pay its debts.