Learn more about the business insolvency services an accountant can provide.
Asset Tracing and Recovery
There are many scenarios where a service to trace and recover assets may be required, and not always in business. Anything of value owned by an individual is an ‘asset’ – this can be shares, property, money held in bank accounts, intellectual property, assets within connected companies, vehicles etc.
To be able to benefit from assets within litigation the ‘asset’ needs to be identified first and only then can the value be unlocked through the courts or negotiation.
Liquidation
A company can be insolvent due to either cash flow inadequacies or balance sheet inadequacies. For example:
If the company is unable to pay its debts as they fall due, this is known as cash flow insolvency.
If the value of a company’s assets is lower than that of its liabilities, this is known as balance sheet insolvency.
Liquidation can be initialed voluntarily by directors of a company or externally by a creditor who may appoint a insolvency practitioner to recover debts.
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