Enforceability of Personal Guarantees Personal Guarantees A personal guarantee is a legally binding obligation on an individual to repay a third party’s debt or borrowing. Effectively, if a company or primary debtor does not pay or is unable to pay a debt, then a...
How do I remove charges and restrictions where the lending company has been dissolved? When taking out a mortgage for a property purchase, a lending company will likely require a restriction to be placed on the property’s register at the Land Registry for its...
Director disqualifications in 2022 Director disqualification in respect of dissolved companies is not a new principle (in fact the key piece of legislation has been in force since 1986), but in 2022 there is certainly a greater risk of it arising as a result of the...
Employees’ rights in insolvency When a company goes into a formal insolvency procedure, employees are understandably concerned about their job security and the company’s ability to pay their salaries. Importantly, however, not all formal insolvency procedures will...
Directors’ duties in insolvency When a company is insolvent, the directors of a company are under a duty to protect the interests of the company’s creditors. Directors can therefore be liable for the actions they take before a company stops trading and also during...
Buying assets and business from an insolvent company You can buy assets from an insolvent company (a company that is in a formal insolvency procedure, either administration or liquidation), but the process is slightly different to simply acquiring the business and...
Creditors’ Voluntary Liquidation | What is it and how does it apply to me? There are various ways to wind up or liquidate a limited liability company. Each method will essentially realise the assets of the company and distribute the proceeds to the company’s creditors...
Members’ Voluntary Liquidation | What is it and how does it apply to me? There are various ways to wind up or liquidate a limited liability company. Each method will essentially realise the assets of the company and distribute the proceeds to the company’s creditors...
Options available for company during financial difficulties A company experiencing financial difficulties is not necessarily a cause for alarm, as it is part of the natural cycle of a business generally. If, however, the directors are concerned about the financial...
What is liquidation? Liquidation is the process whereby the Official Receiver or an insolvency practitioner formally takes control of a company in order to realise and distribute its assets to its creditors to satisfy the debts owed. Following this realisation and...
