The question of whether and under what circumstances a director might find themselves liable for their company’s debts upon entering insolvency can quickly become a very pressing concern.

There are certain rules and regulations surrounding company liquidation, many of which focus on your actions as a director. Once a company becomes insolvent, you must put creditor interests first by ceasing to trade and safeguarding its assets, with little or no consideration for shareholders, members or directors.

If your business is struggling to stay afloat and meet creditor demands, you may find that unlicensed insolvency advisers will claim to have all the answers to your questions.

However, only licensed insolvency practitioners are legally able to take insolvency appointments and manage corporate insolvency procedures from beginning to end.

In contrast, unlicensed insolvency advisers are only able to look at your circumstances and determine which third-party service providers might be best placed to deliver practical solutions to your problems.