Insolvency is the inability to pay the debt. It is said that a company that can not pay its debt is insolvent. This term is commonly used in business. Business insolvency is of two types:
- Insolvency of the cash flow: the company can not pay the debt, since they are reimbursable.
- Balance sheet insolvency – in this case, the company has negative net assets. Your liabilities exceed your assets. This happens when a company has debts.
If you are involved in any business, you should make sure that your company faces any financial problems. Before you understand the insolvency, you should contact any insolvency representative.
You should review some important problems of the company before becoming insolvent. Check if your assets are less than your liabilities, or can you pay off your debt if it happens? If any of the tests prove negative, it may be insolvent before. This does not mean that you can no longer survive insolvency, but that you can use the help of some insolvency practitioner before you really fall into the trap.
Some additional signs of insolvency verification of your company:
- Have you returned the checks to the bank?
- Have you switched providers with new lines of credit?
- Can not make the timely payment of VAT and other tax payments?
- Are you constantly on the roof of your overdraft?
- Personally, do you regularly take money out of your pocket to keep your business growing?
Operations carried out by insolvency agencies or services.
Insolvency services include a team of insolvent professionals who are authorized agents who send companies on the verge of insolvency. They can provide expert advice to overcome their debt problems with their knowledge, experience and skills.
Here are some common operations performed by the insolvency services:
- Acts as liquidator when no insolvency practitioner is appointed in the private sector.
- Administration and investigation of insolvency cases of companies.
- Take legal action in the case of sending insolvency reports and misconduct of the director.
- Deals with insolvency restrictions on orders and liabilities.
- Committed to the disqualification of inappropriate managers in companies.
- Act as an observer or candidate in accelerated voluntary arrangements.
- Evaluate and pay the legal right of reservation.
- Regulates the insolvency of the profession.
- Offering banking and investment services for the insolvency and liquidation of real estate funds.
- Consult ministers and government agencies of the BERR on insolvency matters.
- Provides information to the public on issues of redundancy and insolvency.
Therefore, all the above points can help you overcome your debt in a planned manner.