Negotiate with creditors
Any creditor, or group of creditors, owed more than £750 can ask a court to wind up your business. For this reason do not ignore your creditors - it is important to answer their letters and calls.
Talk to your creditors before you become formally insolvent, as you may be able to find a compromise on your payment terms. Be realistic and honest about what you can afford to repay them. Try approaching creditors who would be lower down the list of who gets paid off in the case of insolvency as they are more likely to co-operate.
If you find you can't meet the conditions of a renegotiated payment plan, contact your creditors in advance. Send as much of the funds as you can with a promise to make up the rest, or renegotiate the deal. Don't wait until the deadline for your repayment has passed to contact a creditor.
Subjects covered in this guide
Insolvency Service Enquiry Line
0845 602 9848
0808 808 4000