Published: 22/02/2021 By Andrew BaileyI spoke to a director yesterday and his first words were “I am struggling to find proper advice online to help with my position”.
He supplies into the hospitality sector so business is on hold. He has a landlord and other creditors pressing for payment. Some of whom have personal guarantees.
My advice was to be careful but give yourself time and don’t rush into an insolvency process. Maintain communications with the creditors and make payments where feasible but at a lower level if needed. Don’t worsen the position of creditors. The Government have provided protection until the end of March from petitions and forfeiture and they have done that for a reason. When lockdown eased last time his income had picked up and he had traded so we talked through that this could apply again and with breathing space he may be able to trade out of it. I genuinely hope we don’t speak again and he trades out of the problems.
There is nothing wrong with taking time in considering options. If the information online is not adequate then speak to an insolvency practitioner. We don’t immediately ask for fees or signed terms of engagement. Whatever sector we are in, we are all feeling the effects of what is happening and insolvency practitioners are no different in trying to help and support people.
We always offer a free initial consultation and there is rarely a situation we haven't come across so give us a call / email or message us online and we look forward to having a no obligation chat with you at a time convenient to you.
Call us on 020 8661 7878 or email firstname.lastname@example.org