This page is to remind you that directors must act promptly when their company faces financial insolvency. Although the current law prevents insolvency practitioners from taking action against directors for wrongful trading, this current protection is due to end on 30th June 2021. Therefore, to avoid the risk of personal liability for YOUR company’s debt, it is necessary to act quickly.
At the end of June 2021, the current law preventing HMRC and other creditors, such as landlords, from taking debt recovery or winding up petition actions will also come to an end. Thus, you can be sure that the current absence of legal action against your company will not last more than 4-5 weeks. Have you arranged time to pay deals with HMRC? With the landlord? With your company’s creditors? If not they will be starting legal action soon to recover their debts. Has your company got costs in line with actual (not hoped for) turnover?
Additionally, if your company has borrowed money under the Bounce Back Loan or the CBILs loans schemes, these loans repayments are now becoming due, after the capital and interest holiday of 12 months comes to an end, for most of these loans in June 2021. The bank or other lenders, will be repaid by government, but only if the borrowing company enters into CVA or liquidation. However if you do not make payments or agree a further holiday of payments, please be aware that banks will start collection action soon, to recover these loans if payments are not made. These actions will be addressed to YOU as the company director at your registered office or home address.
It may appear that creditors of the company are being supportive and “quiet” at the moment, please remember this is because they are currently banned from pursuing debts and directors. This will all come to an end in four weeks. Our strong advice is to act voluntarily and begin to restructure the business, the wages and overheads AND its debt. What’s your plan to survive and THRIVE after the pandemic? We can help solve company debt problems and free you up to drive the business. But waiting for something to turn up is not the way to deal with ever increasing debt issues.
We can assist you to get this turnaround and rescue process under way and bring the pressure to an end. Please do not hesitate to call KSA for advice or assistance, but the key message is this: as the Coronavirus pandemic comes to and end, so do the protections for insolvent companies and their directors. Debt collectors will soon be calling, to avoid that we strongly recommend acting now, don’t wait for the pressure to build.
Every one of our new clients says;
We wish we had met KSA sooner and acted quicker!
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