Personal Insolvency

COVID 19 – YOU AND YOUR BUSINESS

We are in unprecedented times and the full consequences of Covid 19 cannot be predicted. One thing which is certain is the current health crisis will have economic consequences that may in turn affect you and your business.

If you are faced with an insolvent debtor there are a number of things which you need to consider –
• What are your contact terms with that debtor and do you have any retention of title provisions which you can rely on?
• Do you have any security for your debt which you can call in – this could include personal guarantees.
• What insolvency process is being proposed for the debtor if any? Not all of these are the same and the consequences for you could be different. This is true particularly for landlords with an insolvent tenant.

If it is your business facing insolvency you need to know what you options are. This will include an analysis of the assets and liabilities of the business and whether there is a viable entity which can be saved via a restructuring route. Can you make use of the current financial reliefs? These may include -
• HMRC time to pay
• Business rates holiday
• Business interruption loan scheme
• SSP packages

Early advice is key particularly if there is an opportunity to renegotiate payment terms with creditors on either a formal or informal basis.

If you are facing personal insolvency there may be support available from HMRC and/or you may be eligible for a 3 month mortgage holiday. Early advice from an insolvency solicitor can be key to understanding what your options are.

For further information please contact either Kathryn Maclennan kmaclennan@kbl.co.uk or Richard da Roza rdaroza@kbl.co.uk