CREDITOR PRESSURE / QUICK LINKS

Don't crack under creditor pressure

Did you know...
It's possible to get the leniency needed to repay debts and recover gradually.

Does your company have mounting debts? Creditors chasing you for payments you cannot afford? If you are struggling with increasing pressure from your creditors then it is important not to bury your head in the sand and to take action via one of the numerous options we have available. At Clark Oliver, we can help alleviate creditor pressure and find the right solution for you and your company.

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Creating options and opportunity

If your business is experiencing creditor pressure, threats of CCJs, or even a winding-up petition, you must act now to protect your business and the directors. Being put under pressure by creditors is never easy, but burying your head in the sand and not taking any action will only make things worse.

Pressure from creditors can be extremely hard to deal with, especially when dealing with difficult and aggressive creditors such as HMRC, Suppliers or Banks. With plenty of legal authority, they will go to great and persistent lengths to recover lost payments from your company. At the end of the day, your creditors simply want what is owed to them – which means there is always room for negotiation.

At Clark Oliver, we work with you to decide how best to deal with creditor demands and work towards ensuring the future survival of your business. We can create time to negotiate with your creditors, delay bailiffs and even help postpone or avoid your company being wound up.

If your business has creditors chasing you for payments you cannot afford, please don’t wait any longer to take action. Clark Oliver will provide a free consultation and discuss with you the best way to help your business moving forward. Simply complete one of our online enquiry forms and one of our specialists will call you back.

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Pressure from HMRC

HMRC are a common creditor for most company directors. It is a daunting prospect dealing with them. The main advice is to act quickly. If you fail to contact them about your situation the chances of a successful outcome are significantly reduced, but negotiations can be difficult if you do not understand how they operate.

Fortunately, there are a few solutions available to those companies owing money to HMRC such as time to pay arrangements, which allow your company to repay what you owe over a longer period.

Clark Oliver can contact HMRC on your behalf. We have an excellent history of successful negotiations.

Creditor Rights

When your company owes money to its creditors, they have a right to collect their debts. If your company can’t afford to pay its creditors, they also have the right to take action to ensure they can recover as much cash as possible. Creditors can legally work with debt collection agencies in order to recover debts from your company. They can also legally sell debts to other companies, often for a certain percentage of the debt’s total value.

When your company’s debt is sold to another company or assigned to a collections agency, it does not become less legitimate. Your company still owes money and can face significant pressure from the company assigned to collect the creditor’s debt. If your company has secured debts, its creditors may be able to seize assets that are attached to the loan as collateral if the debt isn’t paid. If these assets are essential to your company’s operations, their seizure can have serious effects on cash flow.

Unsecured creditors can place pressure on your company by delivering a statutory demand. This is a formal demand for payment of a debt that, if ignored, can allow a creditor to initiate a winding up petition against your company.

Creditors and Court

If your company ignores communications from its creditors and fails to pay its debts on time, it may receive a statutory demand. Receiving a statutory demand indicates that a creditor is serious about pursuing court action against your company. When your company receives a statutory demand, it has 21 days to pay its debts to a creditor. Failing to pay the debts or work out an arrangement with a creditor within 21 days could result in a winding up petition being filed against your company.

Receiving a statutory demand is a significant development in creditor pressure as it signals that the creditor is serious about pursing your company. A creditor can, with relatively modest expenses, subsequently take your company to court. If your company receives a statutory demand for a debt that it can afford to pay, it’s advisable to pay the debt. If you cannot afford to pay a debt after receiving a demand from a creditor, your company may be insolvent.

Alleviate Creditor Pressure

When a creditor or several creditors start putting serious pressure on your company, insolvency and the threat of a winding up petition are often only weeks away. You can either contact your creditors yourself or negotiate a repayment plan or you may have more success utilising the services of Clark Oliver who can speak to your creditors on your behalf and help take creditor pressure off your hands.

If you’re having problems dealing with creditors and are not sure how to stop them from pressuring you, contact us today for a free consultation.

We can assess your situation and help you devise a business rescue strategy that will provide the leniency needed to repay debts and recover gradually.

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