ABSTRACT
Insolvency can occur unexpectedly, but often it comes after months, if not years, of desperately trying to keep the business afloat. Often, when a business owner feels that he has come to the end of the line because he is unable to clear all his debts, he will call in an insolvency specialist, who will review the state of play to see if there is anything left to salvage. Individual/company voluntary arrangements are essentially a deal between the insolvent individual/company and their creditors, which effectively place a legal ring-fence around the debtor and stops creditors attacking them. Businesses can often overstretch themselves to the point where they find themselves reliant upon future income to pay liabilities and think that they can trade out of the problems. This is often described as 'chasing sales'. The sooner the business sorts out its fundamental -problems the better, so that's where the attention should be focused.
