Understand the position
Clear information before you decide what to do next
Confidential company insolvency advice for directors who need to understand rescue, repayment, administration and liquidation options.
- Review cash flow, debts and creditor pressure
- Compare rescue and closure routes
- Understand the possible effect on directors
Start with the actual financial position
Insolvency is not determined by one overdue invoice or one difficult month. The starting point is whether the company can pay debts when they fall due and whether its liabilities are greater than its assets. Current management accounts, creditor balances, tax arrears and realistic cash flow forecasts help establish the position.
The available route depends on viability
A viable company may be able to negotiate with creditors, seek funding, propose a Company Voluntary Arrangement or use administration. Where recovery is not realistic, an orderly liquidation may protect value and prevent the position from worsening.
Directors should act early
Once insolvency becomes a concern, directors must consider creditors and avoid decisions that worsen their position. Taking advice early creates more time to assess options, protect records and explain the next steps properly.
Practical next steps
What to prepare now
A clearer picture helps the first conversation focus on realistic options.
- Gather current creditor and HMRC balances
- Prepare a realistic short term cash flow
- Record any legal demands or enforcement action
- Arrange a confidential review with a specialist
Common questions
Company Insolvency Advice FAQs
How do I know if my company is insolvent?
Common tests consider whether the company can pay debts when due and whether liabilities exceed assets. A proper review should use current figures rather than assumptions.
Does insolvency always mean liquidation?
No. Viable companies may have rescue or repayment options. The right route depends on cash flow, creditor support, funding and the underlying business.
Should the company continue trading?
That decision depends on the facts. Directors should avoid worsening creditor losses and obtain professional advice before taking further credit or making unusual payments.
This page provides general information and is not legal, tax or financial advice. The right action depends on the company’s circumstances. Formal insolvency procedures must be handled by an appropriately authorised professional.