When a company is in financial distress, it does have to deal with its debts with some urgency. The consequences of inaction can be severe. Amongst other things, directors can find themselves liable for company debts. A winding up petition is a serious matter and can be triggered by a creditor who is owed just £750.
At Cooper Matthews we have considerable experience and expertise at dealing with the financial dilemmas of businesses. Many of the firms we have assisted have gone on to have prosperous futures. When an organisation is struggling with debt, it always makes commercial sense for them to seek help fast.
In today’s complex and unpredictable economic climate, many businesses are finding it hard to keep going. It is important that everybody knows some details about the possible implications of a winding up order. It can lead to a situation where bank accounts are frozen and the Insolvency Act of 1986 stipulates that trading without the permission of the court can be prohibited.
When a business is not prospering, it is easy to become demoralised. Some individuals are so disappointed by their misfortune that they move towards negative outcomes without thinking about all their diverse options. Specialist advice must be obtained as soon as possible.
The fate of a business is affected by a myriad of things and it is not possible to influence all of them. However, even when prospects seem poor it is worth persevering in an informed way. If a company cannot be revived, it may be feasible for the worst case scenarios to be avoided.
business debt, winding up petition, winding up order