DMBM685030 - Enforcement action: transfers to Enforcement and Insolvency Services (EIS): introduction: impact of insolvency on customers
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Insolvency has serious consequences for those concerned.
Individuals
- will have their bank account frozen
- won’t be able to get credit for more than £500 (and won’t be able to get a mortgage)
- won’t be able to trade under another name
- won’t be able to promote, form or manage a limited company
- won’t be able to be the trustee of a charity or pension fund
- name will be published in the London / Belfast/ Edinburgh Gazette (as appropriate)
- customer’s home may be at risk.
Partnerships
- will be wound up
- will have their bank accounts frozen
- will have their assets realised to pay the creditors.
Individual partners will be bankrupted and face the consequences listed for individuals above.
Companies
- will go into liquidation and the liquidator’s main aim will be to realise the company’s assets to pay its creditors
- will be dissolved and struck off the Register of Companies
- with any money left will the money go to its shareholders
- will have their name published in the London / Belfast / Edinburgh Gazette (as appropriate).
Directors:
- will have to explain why the business failed
- could be disqualified from running a company from between 2 and 15 years if found guilty of wrongdoing
- that have traded with the same or a similar company name without the court’s permission may have all debts incurred become their personal liability.