Insolvency - Business Solutions

There are few businesses, however large or small, that will not face challenges and it is their leaders’ response to those difficulties that will determine their future.

Free consultation

FREE one-hour confidential consultation for every enquiry.

Insolvency calculator

There are two tests which can help to determine if your company is insolvent - take the test.

Creditor portal

Case information can be accessed by creditors using a case reference and password.

About Wilkin Chapman Business Solutions

Wilkin Chapman Business Solutions Ltd is a subsidiary of Wilkin Chapman LLP solicitors.

We specialise in providing solutions to businesses that have financial pressures and we have legal, business consultancy and insolvency experts available so that we offer a true one-stop shop avoiding the need to instruct professionals from different organisations. Our initial advice is also free of charge.

We will look at all the options available to you when you are faced with insolvency, financial difficulties or other business challenges either now or those anticipated in the future. We will spend time to understand your business and you as an individual and in doing so determine the best course of action. There will be more options than you think. For example, if you wish to remain trading but can’t see a way forward, then we can help you understand and guide you to propose a Company Voluntary Arrangement.

If the only course of action is to seek closure on your current situation, then we have highly experienced professionals who can support that decision and guide you through the liquidation process to protect stakeholders and the business and achieve a managed closure.

If you wish to remain in control of the future business, but unfortunately need to close the company, we can assist you with that process. We have vast experience in all business rescue situations. It is always important to seek approachable professional advice as soon as possible.

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What we can do for you

  • CVA - Company Voluntary Arrangement
  • Liquidation
  • Administration
  • IVA - Individual Voluntary Arrangement
  • Consultancy
  • Cash flow problems
  • Creditor pressure
  • Insolvency
  • Statutory demand
  • Tax arrears
  • Winding up petition
  • Finance
  • Factoring
  • Debt collection
  • Loans
  • Debt negotiation
  • Payment plans

Frequently asked questions

  1. What is involvency?

    Insolvency happens when a company is unable to pay its debts on their due dates or has insufficient assets available to cover the total of their debts.

    It is the director’s responsibility to recognise when a company has become insolvent, and they can be held legally responsible for allowing the company to continue to trade if it is indeed insolvent.

    Choosing the best process for you

    There are many procedures available to insolvent companies and choosing the right option for you and your business is critical. For example: Administration, Administrative Receivership and a Company Voluntary Agreement (CVA) are all solutions that offer potential rescue for the business.

    It is often preferable for a company to continue trading using one of these processes in order to preserve the company’s value and retain its existing customer base.

    Liquidation

    If your business cannot be rescued, then it will be placed in to liquidation. This process involves your company’s remaining assets being turned into cash and distributed amongst creditors. This solution often results in the termination of the company’s trading activities.

    The insolvency processes can be initiated by any single creditor or group of creditors. It can be initiated by the courts and lending institutions, or by directors and shareholders of your company.

    The aim of any of the insolvency procedures is to extract the greatest value out of the company for the benefit of its creditors. The individual circumstances of the business and the total available assets will determine which process is best suited to achieve this aim.

  2. What is the insolvency process?
    • Firstly, the company's directors must recognise the company is insolvent. There are two tests which can help to determine if this is the case:

      • The balance sheet test: Is the value of your combined assets less than your total liabilities?

      • The cash flow test: Will you be able to pay your bills when they are due?

      • Do the test with our FREE Insolvency Calculator

    • Control of the company’s assets are then passed to a licensed insolvency practitioner, who will initiate the appropriate procedure. As the company’s assets become available, they will be distributed in a strict order of priority

    • Organisations with fixed charged security over the company’s assets will be paid first

    • The next group of creditors to be paid will be preferential creditors. This pay-out usually consists primarily of employee’s wages and holiday pay

    • Creditors holding floating charge securities will be next in line to receive finds, followed by unsecured creditors

    • If there are any funds remaining, the last group of creditors to be paid will be the stakeholders themselves

  3. Do I need an insolvency practitioner?

    If you are experiencing financial difficulty, it is highly advisable that you seek professional advice from a licensed insolvency company.

    An insolvency practitioner has the experience, knowledge and qualification to offer quality and trusted advice, guiding you towards the best option for your business’s specific circumstances.

    ONLY licensed insolvency practitioners are authorised to provide insolvency services of any kind in the UK.

    They are uniquely qualified to understand insolvent companies’ financial situations and recommend the option, that will ultimately result in the best outcome for your company and its creditors.

    At Wilkin Chapman Business Solutions, we have decades of combined experience as insolvency practitioners and are available to offer advice throughout the UK.

  4. Which is the best insolvency option for me?

    Ultimately, the primary objective of a formal insolvency procedure is to maximise returns for the company’s creditors.

    In most cases, the best way of achieving this aim is to keep the company operating by means of a rescue procedure.

    The sooner a company seeks help, the greater the likelihood a business can be rescued.

    Creditor portal
  5. How much will it cost?

    If you want to discuss the best way forward for your company’s options and assets, then our initial advice is FREE of charge. The costs of a CVA are normally paid from the on-going payments into the arrangement, meaning that costs can be budgeted as part of the overall financial arrangement with creditors.

Insolvency calculator

Our calculator will give an indication if your business is solvent or insolvent based on the information and figures you input in each of the three stages.

Should you wish to speak to one of our advisers following this decision, you can contact us on 01472 246666.

1 Can your business pay its bills when they are due?

For example you should click ‘No’ if:

You cannot pay VAT owed and frequently fall behind with the tax payments when due, or have any corporation tax arrears.

You have payment terms with creditors and you regularly pay beyond these terms.

You owe employees salary and cannot afford PAYE/N.I. when due the following month.

2 Balance Sheet

3 Legal Action

Has a creditor taken legal action against your company for an unpaid debt?

Select ‘Yes’ if:

You have received court proceedings or a County Court Judgment.

You have had notice of enforcement action.

You have been threatened with a statutory demand or winding up proceedings.

Based on the answers you have provided the current status of your company is

Failure to seek insolvency help can dramatically increase the risk to a director and lead to; wrongful trading, being made personally liable for company debts, director disqualification between two - 15 years and paying compensation to creditors.

Call 01472 246666 for FREE confidential insolvency advice, or use the form below to request a callback.

Request a callback

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Quick contact form

Submit an enquiry below and we’ll be in touch as soon as possible.

Or call the Wilkin Chapman Business Solutions team on 01472 262630

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Partner Matthew Dix 01472 262630 Grimsby Insolvency Practitioners
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