This is the number 1 question that we are asked by clients.
In the 10 plus years that I have been involved in the insolvency industry – I think I have seen 1 x insolvent trading claim go through to completion and a Director being charged for insolvent trading.
In reality – Insolvent Trading is a very complicated and costly action for a Liquidator to pursue. There needs to be strong evidence of insolvent trading, and a good commercial reason to pursue this course of action. Most insolvent trading claims are settled due to the complexities involved.
Whilst no-one wants to have the fear of this happening to them – the best course of action is to get on the front foot early – get some advice around your company, and if you believe the company insolvent, take action quickly.