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What happens after insolvency?

KSA Group, who own this site, will help you to fix problems in your business. We won’t charge for any initial advice or face to face meetings. We speak in English. We will save you money and your precious time.   However, we do advise that you have a look through our guides and options so you can have an idea about what is possible for you, given your current situation.

When you call our freephone number 0800 9700539 you will quickly speak to someone who wants to help you, not criticise you. We help people like you every day – imagine how you will feel when we start to lift the load off your shoulders?

My accountant told me to do it!

Accountants do not know everything about insolvency! Following the increasing numbers of insolvencies of limited companies accountants are being warned to be vigilant as many insolvent companies are blaming their accountants for poor advice.In many instances illegal dividends and loans are being made to company directors as a way of reducing tax payments. A dividend becomes illegal if the company does not have enough profit to cover it. In fact HMRC are so concerned that they have contacted insolvency practitioners as they believe it is a way of evading tax.It should be remembered that a company director has a legal duty to act responsibly. If a company becomes insolvent (ie meets any one of the insolvency tests) then the legal duty of the director changes and they must act in the best interests of the creditors. (all of them being treated in the same way). If the directors do not act in the creditors' interests and they act "wrongfully", then they can be made personally liable for the company’s debts from the time they knew the company was insolvent!So saying my accountant told me to do it may not impress a creditor, liquidator or judge in a civil law action.Talk to KSA Group for advice or have a look at our comprehensive guides on overdrawn directors accounts

My accountant told me to do it!

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