
Understand your company's position and learn more about the options available
Require Immediate Support? Free Director Helpline: 0800 644 6080
Free Director Helpline: 0800 644 6080
Updated:
When a business enters insolvency and can no longer pay its bills, it’s not uncommon for creditors to suspect wrongdoing of some description by the directors. Not surprisingly, people look for someone to blame, and this blame is commonly placed at the door of those who have run the business.
Circumstances can change very quickly in business, however, and it doesn’t take long for a ‘slow’ month or two to cause serious financial decline. Maybe the commercial environment or industry in which a business operates has caused it problems, for example, rather than negligence or wrongdoing on the part of the owners. Unfortunately, this means business owners can sometimes experience harassment by creditors.
Get an instant understanding of your:
Plus much more ...
Start The 60 Second TestThese situations can be difficult to deal with as a business owner or director who has genuinely attempted to steer their company out of danger, and if you’re being harassed by one or more creditors it may be time to report it to the police.
It’s important to keep a record of instances when you’ve felt threatened or harassed by a creditor, as it will support a complaint should you need to make one. Whether it’s continuing threatening phone calls, letters, or visits to your home, this type of harassment needs to be stopped. Making a complaint to the police may be sufficient to warn off the creditors, as it shows you’re serious about taking action if necessary.
Mounting creditor pressure?
If your creditors are growing increasingly impatient, it is time to take action. Ignoring the situation is only likely to make it worse. Take the first step today by contacting Real Business Rescue for immediate help and advice.
The team are available now - 0800 644 6080
60 Second Test Find Your Nearest Office
If a business enters insolvency the owners have a duty to cease trading and place the interests of their creditors first. This protects creditors from losing more money than is necessary, and helps business owners to avoid accusations of wrongdoing or misfeasance.
In broad terms, misfeasance is the misappropriation of company funds or property assets - examples can include making preferential payments, selling assets for less than their true value, and taking such a high salary that it contributed to the business’ downfall.
If a creditor makes a claim of misfeasance against you, it could result in personal liability for some or all of the business’ debts. Disqualification as a company director is also a possibility, and this could be for up to 15 years. In cases where fraud is proven, you may face criminal prosecution.
In an effort to win their claim the creditor could pursue you through the courts for repayment of the debt, putting at risk your own personal assets and funds if you can’t afford to pay and have to enter bankruptcy.
If your company is struggling with unmanageable debts, squeezed cash flow, or an uncertain future, you are far from alone. We speak to company directors just like you every single day, and we are here to give you the help and advice you need.
Call our team today on 0800 644 6080
Our partner-led team at Real Business Rescue can offer support and advice if your business has ceased trading and you feel you’re being harassed by creditors. We offer free same-day consultations, and operate an extensive network of offices around the UK so you’re never far away from professional help.
Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.
Complete the below to get in touch
For Ltd Company Directors
Get An Instant Understanding Of Your:
Plus much more ...
We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.
Understand your company's position and learn more about the options available
Find your nearest office - we have more than 100 across the UK. Remote Video Meetings are also available.
Free, confidential, and trusted advice for company directors across the UK.