Is Free Insolvency Advice Obtainable?

Is Free Insolvency Advice Obtainable? Well, the answer is yes, you can speak to us and we will happily provide you with some free insolvency advice.

If you are running a limited company and you are concerned that it might be insolvent, then the sooner you take advice the better. There might be more options available to you than trading on and burying your head in the sand.

Advice From Regulated Or Unregulated Insolvency Advisers?

Fortunately, there are many good sources of free insolvency business advice available to you. There are also sources of information that you may wish to exercise caution about, from unregulated advisers. Unregulated advisers may still provide satisfactory advice but they will not be subject to the code of conduct issued by a regulatory body or the government. Unregulated advisers will not necessarily have professional indemnity insurance, which is mandatory for licensed insolvency practitioners, such as Oliver Elliot’s CEO, Elliot Green.

You can find an insolvency practitioner on the government’s website.

If you are taking advice from unregulated advisers, then if you are required to enter into a formal legal insolvency procedure such as liquidation, they will be unable to act as the office holder to operate the procedure. They will typically refer the matter to an insolvency practitioner who can do so. It is not uncommon for such unregulated advisers to be lead generators for other individuals. You may therefore wish to come to someone like us directly.

Is Insolvency Advice Needed?

If you suspect your company is insolvent, it is a good idea to get insolvency advice as soon as possible.

Determining whether or not your company is insolvent will depend upon two tests being met. There is the balance sheet test which considers whether your assets are exceeded by liabilities and there is the cashflow test, which is the ability to pay your debts when they fall due. 

If your assets are exceeded by liabilities or if you are unable to pay your debts when they fall due, then your company is insolvent. 

We would suggest you take insolvency advice at the earliest opportunity so that you can fully understand the risks that you might be running if you continue to trade, such as what can arise from a breach of duty such as misfeasance trading or wrongful trading.

Taking insolvency advice should not mean you necessarily need to embark upon an insolvency formal procedure, such as liquidation, that is the potential benefit of taking advice at the earliest juncture. The longer you leave it to take advice conceivably the more likely it is that you may, when insolvent, require a formal insolvency procedure to be undertaken.

Where Else Can I Obtain Free Insolvency Advice?

You can obtain free insolvency advice, not only from the many licensed insolvency practitioners, who will in many instances provide, like us, a free initial consultation with no obligation to small business owners. However, there are in addition debt charities such as Business Debt Line, Money Advice Trust and Debt Advice Foundation who you may also consider turning to for information.

If, however, you do require a formal insolvency procedure such as liquidation, then there will be costs associated with placing a company into liquidation after seeking initial free advice from a licensed insolvency practitioner.

The earlier in the process, you seek advice for your business, usually the greater the potential range of options available, such as rescuing the business. Alternative procedures may be available such as a company voluntary arrangement or administration. Informal routes to rescuing your business may be available such as a time to pay arrangement with HMRC or seeking alternative sources of finance to give your business a fresh start on the road to survival.

Obtaining Advice From Your Accountant Or Solicitor

Many owner managed businesses will have a relationship with an accountant for their annual accounts and ensure their tax compliance is in order. They may also have a relationship with a legal adviser to ensure their employment and other legal issues are satisfactorily addressed. Those advisers may also be prepared to offer free advice, even notwithstanding they will not be able to undertake the insolvency process if one is required themselves. It is worth perhaps speaking to them as well to enable you to get a further opinion on the route forward that may work for you and your business.

Would You Like Advice From Oliver Elliot?

If you wish for us to provide you with free insolvency advice, then we are absolutely happy to do so. We will provide a free initial consultation without any obligation whatsoever to discuss with you the circumstances you are facing and see what options may be available to either rescue your business or if necessary consider if a suitable course is for some formal insolvency procedure.