Scottish Insolvency Rescue and Recovery
Our Services for Scotland based Companies:
Corporate insolvency deals with companies in financial distress. The business unable to pay its debts, and the company’s liabilities remain higher than the value of its assets.
If your business experiences a financial crisis, the company would be insolvent. Therefore, consider if you continue ‘trading insolvently’ and ‘wrongfully trading’; the main difference remains, can the company therefore still pay its bills and debts on time. However, if not, then continue to trade, would be deemed wrongful’.
Scottish Insolvency Rescue and Recovery – Corporate Insolvency in Scotland
Various issues force a company to consider insolvency. Usually, it denotes the company trades out of the control of the business and its directors.
Once you accept your business is in trouble, then, act fast. Consult HBG Advisory Licensed Insolvency.
We can explore the options, therefore available to rescue your business.
Time though, however, important.
Ensure you always deal with Licensed Insolvency Practitioners.
Several possible insolvency solutions exist, however, remaining available to you. Therefore, relieve the pressure and get your business back on track.
It is an opportunity to review your business, fix what is not working, and therefore, revise your business plan moving forward.
Our team at HBG Advisory qualified and experienced to help.
The solutions are available in Scotland: –
Scottish Insolvency Rescue And Recovery – Company Administration in Scotland
The terms “Administration” and “pre-pack administration”, widely known in the UK retail rescue plans. Usually used to assist an insolvent company trade as a going concern and provide a more significant return for creditors, save jobs and generate a more substantial return if sold on for creditors. Usually, when the company liquidated.
Receivership in Scotland
a licensed insolvency practitioner, who will be known as the Receiver is appointed to recover monies that may be owed by a business to a creditor it may owe money.
When a company has failed to pay monies, it owes which is secured by a legal charge then a receiver, therefore, may be appointed by the charge holder.
The Receiver will be empowered, therefore to sell charged assets, to repay the debt. While the Receiver collects monies due, they, therefore, will handle the management of the company.
Differences in the insolvency process – Scotland to England and Wales?
Pending new Scottish Rules reflect the Insolvency Rules for England and Wales. However, Scotlands legal system remains separate. Indeed differences remain in statutory provisions and rules applicable.
- Scotland has no official receiver as does England and Wales. The Official Receiver takes insolvency appointments. Scotland, therefore, has no liquidator of last resort.
- No Law of Property Act (LPA) Receivership exists in Scotland – Scotland has Administrative Receivership (Chapter 2 of the Insolvency Act 1986.).
- Various methods for approving fees. Scottish insolvencies, do not agree to costs in advance. However, there is a retrospective consent of fees. So they then may seek approval by creditors or the court.
- Scotland has no statutory power to disclaim onerous property or contracts in Scottish insolvencies.
- A Scottish Insolvency Practitioner may cause the insolvent company to reject its contractual responsibilities. However, a liquidator is unable to strip the company of a real right in the land by a one-sided disclaimer.
Should a company be struggling financially and has no hope of recovery, however. A Creditors Voluntary Liquidation (CVL) is therefore used. The licensed insolvency practitioner, as with administration, realizes assets from the company, then uses the raised funds to pay the creditors and then shut the company.
For help with Directors Redundancy view REDUNDANCY