My business debts are out of control – is there any possibility I can write them off and start again?

Debt Advice

Having out of control debt in a business is never a good position to find yourself in. Our Insolvency Practitioners in Manchester can help you fix your out of control debt before it becomes a bigger issue. You could be at the stage where you have tried to raise money from your bank, you’ve looked into factoring or even tried to attract investment. Whilst these can all be useful ways to raise funds and bring your company debt under control, depending on your circumstances these can be difficult to arrange and can often take time to put in place. If you continue to trade whilst insolvent then as a director you are putting yourself at risk of wrongful or even fraudulent trading, potentially making you personally liable for your company’s debt. If you can’t see a way out of your financial troubles, then you may have to take the difficult decision to cease trading. Whilst this is an extremely tough decision, and it may seem like the end of the world, it can sometimes be seen as a new beginning. Aside from current debt and cash flow problems, your business model may actually be very good and indeed successful and profitable if it were not for the restrictions of current circumstances. Attempting to manage large amounts of debt whilst still keeping the company running and the staff employed is very stressful for a business owner and may impact on the decisions you make as you are constantly worrying about how to deal with the debt. However, if you could just ‘ringfence’ the debt then it would give you a chance to focus on operating a successful business. There are ways in which you can legitimately write off company debts and start afresh. In some circumstances you may even be able to buy the work-in-progress and the assets of your old business at a fair value, which would give you a good starting point for your new venture. Further, your staff from the old business can transfer to the new one, which would mean saving the jobs of the people you had previously employed. Trying to manage the debt of a struggling business can be very timely, but by restructuring and starting again, the debt of the old business will be gone allowing you to concentrate on building a new and successful business having learnt valuable lessons along the way. For confidential advice about the possibility of writing off your business debts and starting again contact our Insolvency Practitioners in Manchester on 0300 303 8284 or via our contact us page.