Why might I need a debt law specialist?

 

By Andrew Davidson

In these difficult economic times it is sometimes very easy to see all debt as bad, but debt is fundamentally a part of doing business in a modern economy. Over the course of time a successful business should see its income totalling more than its outgoings, but at any one instance this may not be the case. Fundamentally, debt law is designed to help businesses stay in business.

Seek advice early

The important thing to remember if you think that you may need to take advantage of debt law is to seek advice early. Often it is possible to resolve a potentially difficult situation if it is identified early enough. People who leave things too late often struggle to find the funds to pay for a solicitor and, unless you are a specialist, debt law can seem impenetrable. Businesses should always stay realistic about their finances and should try to avoid leaving it to the last minute before seeking professional help.

Review your options

A good debt law specialist will be able to review the business’s financial issues and suggest legal solutions. The priority will always be keeping the business up and running, so they will not go straight to talking about insolvency. A debt law solicitor will always look carefully at what options are available, and will negotiate on your behalf. Creditors are usually businesses too and understand the pressure you are under.

If your business does need to be wound up, it is still essential to seek proper advice on debt law. The penalties for becoming insolvent can be harsh and a technical mistake can mean the difference between being allowed to start a business again in the near future and spending years disqualified. Obtaining good advice early goes a long way to demonstrating your competence to run a business and will help you to reach a favourable outcome.

Andrew Davidson is one of Caven’s most knowledgeable case handlers with extensive experience in this matter from dealing with clients on a day-to-day basis.

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