There are many situations in which we are asked to advise on insolvency. We mention two common ones.
Firstly, when a client is concerned about its own insolvency. In that scenario, the directors are at risk of incurring personal liability if they continue to trade whilst insolvent. It is important to understand what insolvency means and how it can arise. Ultimately, our recommendation would be to take advice from a Licensed Insolvency Practitioner and we can make recommendations.
Secondly, where we are instructed by client to pursue a claim against another company which either become insolvent or cannot pay its debts.
Examples of work in this area:
- Drafting statutory demand against a company
- Drafting a statutory demand against an individual
- Issuing a bankruptcy petition against an individual and pursuing this in order to recover an unpaid debt.
- Advising a director of a company which is in liquidation who is being pursued by the liquidator for claims arising as a result of his conduct as a director.