Is my company Insolvent?

The definition of an insolvent company is one that is unable to pay its debts when they fall due.

If this applies to your company and there is little or no prospect of injecting sufficient further money into the company or increasing sales and cutting costs in order to 'trade through' the problem, then the law is clear. A director should cease trading and seek professional advice.

If my company is insolvent what are my options?

The main options are:

• Creditor's voluntary liquidation
• Company Voluntary Arrangement (CVA)
• Administration
• Insolvent Company Transfer (ICT)