Frequently Asked Questions

Bankruptcy is a legal process that writes off most debts but impacts your assets and credit. IVAs (Individual Voluntary Arrangements) and DROs (Debt Relief Orders) are alternative solutions that may be more suitable depending on your circumstances. Bell & Company can help assess your options and guide you toward the best solution.

Not sure what’s best for you? Book a free call with our Bankruptcy specialists here

The main responsibility of the Trustee in bankruptcy is to recover assets and pay your creditors. Some assets, including your home, may be at risk. However, there are ways we can protect these assets. Our team at Bell & Company can provide expert guidance on your best course of action. You can learn more here

Or get in touch with a specialist and book a free consultation here.

In our decades of experience, the only time we see people regret bankruptcy is when they made the decision without fully understanding the process or exploring other options. That’s why we highly recommend speaking with a member of our team at Bell & Company. We’ll ensure you have all the information you need to make the right choice for your financial future.

To find out more about bankruptcy, click here

If you’re a sole trader, your business assets may be included in bankruptcy. However, company directors have different options. Bell & Company can assess your situation and help you explore the best path forward, whether that involves restructuring or alternative solutions.

Yes, you can start a business again after bankruptcy, but there may be restrictions, especially if you were a company director. If needed, you can declare bankruptcy again, but it’s crucial to seek professional advice first.

Bell & Company can help you navigate post-bankruptcy life and rebuild your financial position.

Bankruptcy is not the only option. Debt restructuring, IVAs, negotiations, or settlements may be viable alternatives. At Bell & Company we specialise in finding tailored solutions to avoid bankruptcy where possible. Speak to us before making any decisions.

Should you enter bankruptcy? Read our in-depth article on Bankruptcy here

The main types of liquidation are Creditors’ Voluntary Liquidation (CVL), Members’ Voluntary Liquidation (MVL), and Compulsory Liquidation. Each serves different purposes, and Bell & Company can help determine the right approach for your situation.

Are you facing or considering liquidation? Speak with one of our experts today to get a clear understanding of your options. At Bell & Company, we provide tailored advice to help you navigate liquidation and explore the best possible solutions for your business and personal circumstances. Don’t face this alone—reach out to us today.

Liquidation can be initiated by company directors (voluntary liquidation), creditors (compulsory liquidation), or shareholders (in solvent liquidations).

Learn more about business liquidation here

No, once a company enters liquidation, trading must cease. However, in some cases, parts of the business may be sold and continue under new ownership. Learn more about business liquidation here.

If you need expert advice to explore potential solutions, speak with one of our experts today

Yes, directors can opt for a Creditors’ Voluntary Liquidation (CVL) if the company cannot pay its debts. Liquidation might be the best option for your business. But, if handled incorrectly, can lead to serious consequences for directors.

When it comes to liquidation, There is no definitive answer here and it very much depends on your business’ circumstances as well as your personal liability. This is why you should always consult independent insolvency experts before making any final decisions.

Contact us today to speak to a business debt specialist.

If your business has liabilities, you will need to go through the CVL process. This will see a licensed insolvency practitioner appointed to liquidate the business. They will take control of the company and sell its assets to maximise returns for creditors.

Read more about what happens to different types of debts during Liquidation here.

Generally, directors are not personally liable unless they have given personal guarantees or engaged in wrongful or fraudulent trading. Bell & Company can assess your risk and help protect your position.

You need to consider the following;

• Have you or any other directors signed any personal guarantees for business loans?
• Have you borrowed money from the company i.e. a director’s loan account?
• Have you taken dividends when the company was insolvent/struggling financially i.e. illegal dividends?
• Have you spent a CBILS/BBLS loan on anything other than business expenses?
• Do you owe large sums to HMRC?
• Did you ever not follow the rules governing directors’ conduct?

If the answer to any of these questions is “yes” then you need to stop and consult a business debt specialist as you could face serious personal consequences.

A liquidator is a licensed professional responsible for selling company assets, paying creditors, and closing the company. They are appointed by directors in voluntary liquidation or by the court in compulsory cases.

They will take control of the company and sell its assets to maximise returns for creditors. They do not work in your best interests. That is why you should reach out to a member of our team.

Our team will inform you of the worst-case scenario which will allow you to prepare and reduce the personal impact on you.

Once liquidation begins, legal action against the company generally stops. However, creditors may still take action against directors if personal guarantees are involved. Bell & Company can provide expert advice on how to handle this.

Depending on a variety of factors, initiating insolvency proceedings can cause a ripple effect that leaves directors facing unexpected criminal and financial charges.

Contact us today for a for a free, impartial case review.

In liquidation, creditors are repaid in a specific order. Secured creditors, such as banks with charges over assets, are paid first. Next come preferential creditors, including employees owed wages. Unsecured creditors, such as suppliers and HMRC, follow, with shareholders being the last to receive any remaining funds. Understanding where you stand in this process is crucial. Speak with a member of our team for expert guidance on how liquidation may impact you.

HMRC can take the same action as any other creditor but, they are also granted additional legal powers to assist them in the recovery process. As mentioned, they are particularly aggressive so will not ‘hold back’ when it comes to recovering money owed.

HMRC can and will take enforcement action, including issuing a winding-up petition to close your business if tax remains unpaid.

Find out more about how HMRC can recover debts here

Yes, HMRC can send enforcement officers to seize assets if debts are not settled or arrangements are not made.

• Distraint/Asset Repossession – HMRC can send bailiffs to repossess your company’s assets and sell them to pay your debt.
• Collection agencies – HMRC employ a number of very persistent debt collection companies to pursue debts on their behalf.

Find out more about HMRC Debt here.

The company will cease trading, and a liquidator will distribute assets to creditors, including HMRC. Directors may face personal liability if found guilty of misconduct.

Read more here

HMRC can take the same action as any other creditor but, they are also granted additional legal powers to assist them in the recovery process. As mentioned, they are particularly aggressive so will not ‘hold back’ when it comes to recovering money owed. Some of the ways they do this include:

• County Court Judgements & Statutory Demands – Although slightly different, both of these are formal requests for payment and the precursor to forcing the liquidation of your business.
• Winding-up petition – This is a petition issued for the closure of your business. If you do not respond, a liquidator will be appointed, the assets sold and your conduct investigated.
• Distraint/Asset Repossession – HMRC can send bailiffs to repossess your company’s assets and sell them to pay your debt.
• Collection agencies – HMRC employ a number of very persistent debt collection companies to pursue debts on their behalf.
• Penalties – To deter non-compliance, HMRC has the ability to add late penalties and charges to your existing arrears. This can add a hefty sum to your liabilities.

Read more here

What makes HMRC different (and more difficult) than most creditors is that they don’t work for profit and therefore the ‘commercial’ aspect does not factor into their decision-making process.

As a result, they are much less likely to accept payment plans or reduced settlements. They are also far more likely to begin legal action and issue winding up petitions for companies.

So, it may be tempting to hold off on facing your HMRC liabilities. However, this could spell disaster for you and your business. As well as this, the longer you wait, the more penalties and fees you will incur, ultimately increasing the amount that you owe

Learn more about what options you have here

HMRC can pursue personal assets if you are personally liable, such as under a Personal Guarantee, or in cases of wrongful trading.

HMRC can take the same action as any other creditor but, they are also granted additional legal powers to assist them in the recovery process. As mentioned, they are particularly aggressive so will not ‘hold back’ when it comes to recovering money owed. Some of the ways they do this include:

• County Court Judgements & Statutory Demands – Although slightly different, both of these are formal requests for payment and the precursor to forcing the liquidation of your business.
• Winding-up petition – This is a petition issued for the closure of your business. If you do not respond, a liquidator will be appointed, the assets sold and your conduct investigated.
• Distraint/Asset Repossession – HMRC can send bailiffs to repossess your company’s assets and sell them to pay your debt.
• Collection agencies – HMRC employ a number of very persistent debt collection companies to pursue debts on their behalf.
• Penalties – To deter non-compliance, HMRC has the ability to add late penalties and charges to your existing arrears. This can add a hefty sum to your liabilities.

Do you have more questions on the above? You can call us on 0330 159 5820 or use the Live Chat below to speak to one of the team.

Ignoring HMRC can lead to escalating enforcement, including legal action, asset seizure, or business closure. HMRC interest charges refer to the monetary penalties applied to outstanding tax payments or underpaid taxes. When a taxpayer fails to make a payment on time or underestimates their tax liability, HMRC may impose interest charges as a way to compensate for the delayed payment and to incentivise timely tax compliance.

Whilst HMRC can be receptive and assist in terms of payment programmes etc, they do not and will not waste time with what they sometimes refer to as ‘serial offenders’. By seeking professional assistance and understanding the intricacies of HMRC debts, you can make informed financial decisions and safeguard your business’s stability. 

This may vary on a case-by-case basis depending on several factors, including the availability of our consultants, the speed at which we receive your documents, and the complexity of your case.

You can expect a prompt callback following your initial enquiry, typically within an hour during working hours. In most cases, consultations are scheduled within 48 hours of first contact.

We take a tailored approach to every client, crafting strategies that align with their unique circumstances and goals. To ensure we provide the best possible advice, we conduct a thorough consultation, during which we offer a clear and transparent breakdown of our fees based on the specifics of your case.

As each situation is different, we are unable to provide a quote in advance. First, we need to assess the details of your case to determine the scope of work required. However, transparency is at the core of our service—there are no hidden costs, and our fee structure is clearly outlined. You will not be required to make any payment until you have formally appointed us.

Yes, at Bell & Company, we offer a completely free, no-obligation consultation. This allows you to discuss your financial situation with our experts, understand your options, and receive initial guidance—without any cost or commitment.

Book yours now

At Bell & Company, we have a proven track record of successfully helping individuals and businesses navigate financial difficulties. Our team of experts specialise in providing tailored solutions for a wide range of financial challenges, from personal debt issues to complex corporate insolvency matters.

Every case is unique, which is why we take the time to understand your situation in detail before advising on the best course of action. If we believe we can help, we will outline a clear, transparent strategy tailored to your needs. And if we feel another approach would be more suitable, we will always be honest and guide you accordingly.

The first step is a free, no-obligation consultation—why not find out how we can assist you here?

As a firm regulated by the Financial Conduct Authority (FCA), we are required to carefully assess each case before providing advice. This means we cannot offer instant guidance over the phone without first reviewing your situation in detail.

Our reputation as one of the UK’s leading debt strategists is built on this meticulous approach, ensuring that every client receives tailored, well-informed advice designed to achieve the best possible outcome.

We typically handle between 150–300 enquiries each week, which is why we operate on a booking system to ensure every case receives the attention it deserves.

This is why we offer a free consultation, giving you the opportunity to have a productive one-on-one discussion with a specialist who will carefully consider all the facts before providing tailored advice.

To speak with one of our experts, we encourage you to book a consultation at a time that suits you.