Dealing with Business Debt

Friday, April 13th, 2012

insolvency in ireland - Dealing with business debtIf there is one thing that all businesses would give anything to avoid, it would have to be bad debts. Debt never signifies good news for a company, and the liquidation and the bankruptcy of a company is almost always due to too much debt that can’t be repaid. Not getting into a state of business insolvency is quite easy in concept; the only thing you would do is to avoid having debts. The problem with this simple concept is that it is easier said than done, as thousands of companies can attest to.

Dealing with business debt isn’t easy, because it also means dealing strictly with your loyal customers. Late payments from customers and clients make up almost 25% of all business insolvencies. To sort this out, you may opt to stop depending on the payments from invoices of customers and clients that don’t always pay on time. Though they are loyal and some of them could be your major clients, late payments put your own business finances under stress, and this can put your company at a greater risk of insolvency.

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When Examinership Can Be To Your Benefit

Monday, April 9th, 2012

Insolvency In Ireland - When Insolvency Can Be To Your BenefitWhen you come to the point that your business is experiencing insolvency, the courts may determine that you need help due to your company’s financial status, and though examinership can be helpful, you should remember that an examiner is appointed by the court and you must do what they say. Failing to follow their instructions will result in your business being liquidated.

Working for Creditors

At this stage of the game, you are no longer working for yourself, but for your creditors. This is an important distinction and it is the job of the examiner to determine if your business can do this and how. Which is why it is imperative that you follow their instructions to the letter. On the other end of the process, your business could become solvent again.

Examiners can be Invited

An examiner is someone who comes into your business and basically assesses it from top to bottom. They are looking to see if your company can meet its current obligations and if not they will advise you on how to do things better. If you begin to see signs that your business is floundering and want to avoid a court appointed examinership, it is wise to invite an independent firm to come in and basically do the same thing.

Turning things Around

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What Should I Do If I Receive A Statutory Demand?

Monday, April 2nd, 2012

The very first thing you must do when receiving a statutory demand is pay attention. statutory demand IrelandThis is not something you can ignore or even put off for another day, these demands must be answered in a timely manner. A statutory demand is initiated by a creditor as a demand for payment, installments or security on a debt your business owes, and if left unanswered they can request bankruptcy on your company at which point the courts will appoint a receiver, examiner or liquidater to deal with the situation.

Insolvency Adviser

As soon as you receive this type of notification that your company is in distress you should be looking for some advice. There are insolvency consultants you could turn to for help; you may even have an in-house legal adviser who could point you in the right direction. Your answer to a statutory demand is going to be very dependent upon where your company is and if there is any hope of financial recovery. A good insolvency consultant can go through the information with you and point out areas where you could trim costs and begin covering your business debts.

Do it Yourself

Many business owners and individuals want to know if they can handle a statutory demand themselves, and in some cases you can but it will still require prompt attention. In some situations, these demands are issued but not valid, which means you can apply to the courts to have them set aside. Again, this is something you will want to address in a timely fashion, say within 18 days of receiving the statutory demand.

Set Aside Circumstances:
• You dispute the amount of the debt
• You have a counterclaim for more than the current demand against you
• Demand is below a specified sum
• You do not owe the debt

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Why You Would Liquidate Your Company

Thursday, March 29th, 2012

In today’s shaky Irish economy it is becoming far more common for a company to experience financial difficulties. It is the nature of running a business to have a need find ways to generate more funds. The traditional route for companies has always been to apply for funding from their banks. However, with the ongoing credit crisis in Ireland showing no signs of a let-up, the current problems within the banking institutions, and the downturn of traditional demand for services and products, a lot of Irish companies are finding they can’t keep up with servicing their business debts to the banks, and to their creditors.

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When Insolvency Can Be To Your Benefit

Tuesday, March 27th, 2012

Insolveny In Ireland - When Insolvency Can Be To Your BenefitAlthough it sounds like a ridiculous statement, it is indeed true – you can turn insolvency to your benefit.

Business insolvency could mean a fresh new start for a sinking company. When a business lacks the ability to pay off its mountain of debts from different creditors, it definitely is not an option to just take no action and stress over these problems for weeks. Your business problems need to be resolved by tackling them head-on.

But “How do I do that?,” you may well ask.

Dealing with the company’s continually increasing debts involves due legal process. And it is better to do this immediately to avoid further damage and risks. This resolution process means seeking external help; you will need solid insolvency advice.

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