We are Company Rescue and Not Clear Company Rescue

We are Company Rescue and Not Clear Company Rescue!

Clear Company Rescue are offering a solution to your issues by offering to buy your insolvent company.

Does this sound too good to be true?

The actual process is legal as there is nothing stopping anyone from buying an insolvent company in the hopes of turning it around. However, if the correct course of action is that it should be liquidated, as the debts could never be paid back from current trading, then you have to think why would they do it?!

Why take on the debt and the hassle? They will of course most likely allow the company to be wound up eventually by a creditor. Check whether you will be charged for this somehow. Bear in mind that just resigning as a director of a company does not mean that any responsibility for what happened in the past is just wiped away. You could still be disqualified or made personally liable for any of the debts if you have not acted properly. In addition, under the Insolvency Act 1986, when a company is insolvent the directors have a duty to act in the best interest of the creditors. If you pay someone to take it off your hands are you actually acting in the best interest of the creditors or yourself? It is questionable to be sure, and there may be action against you down the road when the company is eventually wound up by the court. Insolvency Practitioners are licensed and under the regulations they have to act in the best interest of creditors.

Be very wary if you somehow manage to keep the assets of the company without paying for them. This can be what is deemed as a “transaction at an undervalue” and can be reversed up to 2 years later by a liquidator.

Also what about a preference? If you pay back some monies to a family friend instead of HMRC or BBL then again that can be reversed or voided at a later date.

It goes without saying that selling the company will not absolve you of any personal guarantees that you gave on behalf of the company.

What if you owe the company money? The new directors will pursue you for the debt. Directors responsibility under law, if the company is insolvent, is to act in the best interest of creditors. So they may pursue you personally for the debt. Many directors are not aware that they owe the company money. If you have paid yourself drawings and not via PAYE and now the company is insolvent it is highly likely that you owe tax that the company has to pay. More on overdrawn directors loan accounts here.

Ultimately these sort of schemes and legal gymnastics carry risk. Insolvency is highly regulated and there are no shortcuts.

Do you want to take the risk and give your money to a firm that is unregulated by any professional body?

Remember that company directors are not protected by the law in the same way that general members of the public are. They are deemed to be “street wise” and knowledgeable. So there are no cooling off periods, consumer rights, ombudsmen, distant selling rights etc.

Monthly Insolvency Statistics: February 2025

20th March, 2025 in Research and Statistics

After seasonal adjustment, the number of registered company insolvencies in England and Wales was 2,035 in February 2025, 3% higher than in January 2025 (1,978) but 7% lower than the same month in the previous year (2,188 in February 2024). Company insolvencies over the past year have been slightly lower than in 2023, which saw a 30-year high annual number, but have remained high relative to historical levels. Company insolvencies in February 2025 consisted of 393 compulsory liquidations, 1,520 creditors’ voluntary liquidations (CVLs), 115 administrations and 7 company voluntary arrangements (CVAs). There were no receivership appointments. Compulsory liquidations were higher than in January 2025, while CVLs, administrations and CVAs were lower. The (seasonally adjusted) number of compulsory liquidations in February 2025 was the highest monthly number since September 2014.One in 191 companies on the Companies House effective register (at a rate of 52.4 per 10,000 companies) entered insolvency between 1 March 2024 and 28 February 2025. This was a decrease from the 57.6 per 10,000 companies that entered insolvency in the 12 months ending 29 February 2024. Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.CVLsIn February 2025, CVLs accounted for 75% of all company insolvencies. The number of CVLs decreased by 2% from January 2025 and was 13% lower compared to the same month last year (February 2024) after seasonal adjustment.In 2024, the number of CVLs declined for the first time since 2020. This came after three years of increases, peaking in 2023 at the highest annual total since the time series began in 1960. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007.Compulsory liquidationsSeasonally adjusted compulsory liquidations in February 2025 were 41% higher than in January 2025 and 49% higher than in February 2024. In recent months, compulsory liquidations have escalated. The greatest monthly number since September 2014 was February 2025.Compulsory liquidations rose 14% from 2023 to 2024, the highest amount since 2014. This increased from record lows in 2020 and 2021, despite constraints on statutory demands and winding-up petitions (leading to compulsory liquidations).AdministrationsThe number of administrations in February 2025 was 18% fewer than in January 2025 and 27% lower than in February 2024, after seasonal adjustment.In 2024, administrations rose 2% from 2023 and were slightly higher than 2015–2019 totals. Since 2022, administrations have increased from an 18-year low in 2021 during the COVID-19 epidemic.CVAsThe number of CVAs was 42% lower in February 2025 than February 2024 and 50% lower than in January 2025. Numbers remain low compared to historical levels. CVAs are not seasonally adjusted due to low volumes.In 2024, the number of CVAs was 9% higher than in 2023 and over 80% higher than in 2022, which saw the lowest ever annual total in the time series going back to 1993. Despite this increase, the number in 2024 was slightly less than 60% of the 2015 to 2019 annual average.What is causing the changes?The most common creditor in any insolvency is HMRC. In the last few months, having held back for many years as companies have recovered from the recent headwinds, HMRC is now losing patience with companies that owe tax.

Read

Monthly Insolvency Statistics: February 2025

We are Company Rescue and Not Clear Company Rescue

We are Company Rescue and Not Clear Company Rescue!

Worried Director? We Can Save Or Restructure Your Company!

Call now for free and confidential advice