Is your business in financial trouble, unable to pay its debt and facing probably closure This is precisely the situation that a Company Voluntary Arrangement (CVA) was designed for - it is designed to rescue a business where it is unable to pay its debts and is facing closure

For those with a personal debt problem bankruptcy can be a very effective solution If you run a company either as a director or sole trader this could have implications for you

Pre pack administration (or Phoenixing) is becoming more and more popular as a way of rescuing a failing company The process involves setting up a new limited company which then buys the assets of the old business

If a limited company is wound up, the directors could be liable for its debts if they have allowed the business to trade while it was insolvent Winding up is the forced closure of a company

If your company is in financial difficulty and you are looking for ways of preserving investment cash, a company voluntary arrangement could be a cheaper rescue solution than pre pack administration When a limited company is facing financial difficulty, two of the rescue options which are often considered are a company voluntary arrangement (CVA) and a pre-pack administration

As the economy begins a fragile recovery, winding up petitions will continue to be used as a method of debt collection However, the cost of issuing a winding up order is often considerable Despite the recent figures suggesting that the British economy moved out of recession in the last quarter of 2009, there are very few who believe that the recovery will not be long and difficult

A number of companies are struggling financially in the current economic downturn with cash flow problems and mounting pressure from creditors If it looks like you are facing insolvency, particularly where there is a large debt burden, a company voluntary arrangement (CVA) may be a good solution to affect a business recovery

Debt collection strategies such as the issuing of winding up petitions are likely to be more widely used as the number of companies in financial difficulty continues to increase into 2010 and 2011 It looks increasingly likely that the UK economy will come out of recession during the final quarter of 2009

It is not unusual for directors to take on personal debt to support their business If the company fails, directors are then left holding the can for these debts which they are unable to repay

It is becoming increasingly common for both business and individuals to issue winding up petitions as a method of collecting their debts However, this strategy is not without risks