How To Keep Calm Under Creditor Threats

If your business is struggling to pay what it owes then the ever present threat of creditors pursuing you is probably waking you up in a cold sweat. Creditors can come in many guises from banks to other companies and HMRC.  

In the case of the latter, you’re not going to have a lot of wriggle room if you receive a threat of further action being taken. It is not beyond the realms of possibility that your company may be entirely innocent of not paying the required amount of tax and still end up in trouble. Whether the claims of your creditors are valid or not the one thing you can’t do is ignore them.  

Outstanding debts can soon spiral if your business is struggling so the first step should be to appoint an insolvency practitioner. This can in many cases put a halt on your business going into liquidation by seeking an alternative resolution such as a company voluntary arrangement.  

This will give your business the extra breathing space it will need to pay back what is owed over time rather than all at once. An insolvency practitioner can help guide you through this process and it is not unknown for some companies to find that a HMRC error means they can actually claim money back due to overpaying tax in previous years.