FAQ
Who are Leonard Curtis?
What are the free options available to me?
What does it mean to be insolvent?
What is a CVA and what does it stand for?
What does Administration involve?
What is a Receivership and what is the Administrative Receiver?
What does Liquidation mean?
Are there different types of Liquidation?
What if I have personal debts, can you help me?
What is an Individual Voluntary Arrangement (IVA)?
As I am seeing an Insolvency Practitioner, is it necessarily the end of the road for my business?
Ok I have made contact with you, how quickly can you see me?
I need help understanding all the jargon
Who are Leonard Curtis?
A long established specialist business rescue and recovery practice, we are an experienced team ready to help you sort out the best options for you and your business.
What are the free options available to me?
We will give you a free overview of your business and the options available to you depending on your circumstances. This free advice will be available immediately.
What does it mean to be insolvent?
A company or individual is said to be insolvent if they are unable to pay their debts as and when they fall due.
What is a CVA and what does it stand for?
This stands for Company Voluntary Arrangement (CVA), a procedure under which an insolvent company can set up a repayment plan with its creditors. Under this repayment plan, creditors agree to accept a certain sum of money in settlement of debts due.
What does Administration involve?
Administration is a formal protection procedure where the company is placed under the control of an Insolvency Practitioner and the protection of the Court with the aims of either rescuing the company as a going concern, or achieving a better result for the creditors than would be likely if the company were simply to be wound up. Whilst a company is in Administration, creditors cannot take any actions against it except with the permission of the court or the Administrator.
What is a Receivership and what is the Administrative Receiver?
A Receiver is appointed by a debenture holder, normally a bank, to realise assets caught under its charge. A Receiver appointed over most or all of a companies assets becomes an Administrative Receiver. A Receiver or Administrative Receiver's primary duties are to his appointer whereas an administrator has a duty to act in the interests of the creditors.
What does Liquidation mean?
Often referred to as ‘winding up', it is the most common corporate insolvency procedure. A liquidator is appointed to realise the company's assets and distribute the proceeds in a prescribed order of priority. Liquidation signals the cessation of a company's activities and its eventual removal from the Companies Register. Liquidation can follow either a receivership or an administration.
Are there different types of Liquidation?
Creditors Voluntary Liquidation (CVL)
The most common liquidation procedure whereby shareholders, usually at the directors' request, pass a resolution to place a company into liquidation because it is insolvent. The process is driven by the directors. An independent insolvency practitioner is appointed to act as liquidator by the directors and shareholders and creditors are invited to a meeting to agree the appointment or to nominate an alternative liquidator.
Compulsory Liquidation
Compulsory liquidation (or compulsory winding up) is instituted by an order made by the court, usually on the petition of a creditor, the company, or a shareholder. There are a number of possible reasons for making a winding-up order. The most common is because the company is insolvent.
Members Voluntary Liquidation (MVL)
This is a solvent liquidation, in which a liquidator is appointed by the shareholders and the company's assets are sufficient to settle all debts, costs and liabilities within twelve months.
What if I have personal debts, can you help me?
We have a specialist team at Simple Debt Solutions who will offer solution-driven advice to you if you are experiencing personal debt problems. An alternative to personal bankruptcy will be offered through an IVA.
What is an Individual Voluntary Arrangement (IVA)?
A contract entered into between an individual and his creditors whereby the individual agrees to pay certain sums to the creditors in settlement of the debts and they agree to accept the payment in full and final settlement. The arrangement normally lasts for between 3 and 5 years. The arrangement provides the individual with protection from his creditors and binds all creditors given notice of the arrangement. The arrangement is approved if more than 75% of creditors vote in favour.
As I am seeing an Insolvency Practitioner, is it necessarily the end of the road for my business?
No, we are a business recovery and rescue practice and Corporate Strategies division specialises in helping companies in financial difficulties. LC Corporate Strategies will provide you with a concrete plan to help move your business forward. If, of course, you come and see us early enough.
Ok I have made contact with you, how quickly can you see me?
Within 24 hours if need be!
I need help understanding all the jargon
Please visit our glossary or Ask Us a question.
