Last updated: 01 April 2020

Insolvency rules relaxed. Government Guidance

00:00 – You may know that there are some insolvency rules, which basically say that if a company is unable to pay its debts, it has to call in an insolvency practitioner and get advice and whether they should show a shutdown and old now. The prime minister did announce last week, and I think it went under the radar a little bit, that he is suspending that rule for the time being.

He hasn’t said exactly how long for, but for now it is suspended, which means that if as a result of covid19, you call it a fault to pay your debts. Then you’re not going to be helped posting your liable as a director for the debts you call and pay normally in normal circumstances, pre coded 19.

Then after covid19, if you can’t afford to pay your debts. Then the directors can be held personally responsible for continuing to trade and ramp up liability.

01:00 – And that’s fair enough because, you know, we don’t  want people getting burned when somebody already knows they come make that pay their way.

Right. Sometimes I think is a reasonable thing. We don’t want people ripping small businesses off and then starting another day. You know, we’ve had many, many stories of. That happening in the past and then we don’t want that. So that’s what the rule was all about. The, now we’re in extraordinary times, both health wise, both emotionally, both economically.

And uh, the chancellor has suspended that . The prime minister suspended that. Now what does that mean when  he takes off that suspension? That is a million, million dollar question because if. All of a sudden he stops it and then you find yourself in solvent and Yukon trade. All these rules is going to then kick in within 24 hours, or was he going to give us a leeway to go well for the next three months, if you can make it through and as long as you as solvent before, then a will allow you to not be personally responsible.

02:00 – I’m hoping something like that, that we’ve got to stay close to this people because chances are many, many businesses are going to become insolvent very quickly.

For no fault of their own perfectly brilliant businesses may become insolvent. And so we’ve got to prepare. We’ve got to keep our heads and wits about us, which is why I saw doing free training all this month through April to help to keep. All cells ticking over in business to get a marketing prepared to get a position prepared to get all, you know, a messaging can be the same as before.

Covid19 cannot it’s Delta change. How are we going to change that? And that’s what I’m putting my mind to and delivering for free to. Anyone who would like to join me on my Facebook lives would like to join me on my workshops. And I will put recordings on there 03:00 – for anyone who can’t get it at the time, but wants to join me later on.

Alright. This is Gordon. Remember, well, insolvency rules are temporary suspended, but it all depends when he takes them away, how much notice he gives us. You might need do call an insolvency practitioner in very, very quickly. Okay. Uh, the insolvency practitioner we use, I know, is going to be really busy. He is brilliant, but I have a feeling it’s going to be really busy.

So yeah. It’s not a great time, but the good thing is if we plan ahead, we can be prepared. We can be ready to go in a, in a different direction, in a new way, um, when, when this all runs. Runs back into plan. Okay. So this is Gordon wishing well, if you want to link in, just looking at site for workshop or postcode, coven workshop or something like that.

04:00 – Covid19 workshop, it should come up on the searches and I look forward to hearing, hearing for your feedback on that. In the meantime, take care of yourself, take care of your family, take care of all the people around you and uh, we will be okay. To fight another day. Take care. Goodbye.