Why Seeking Help During Business Insolvency is the Smartest Move You Can Make

Real Case: Builder Sentenced for Insolvency Misconduct

Gary Roberts, a builder from Cheshire and director of GR Developments 1 Ltd, was sentenced to six months in prison (suspended for two years) after serious misconduct during his company’s insolvency.

In 2021, knowing the business was already insolvent, he accepted a £17,000 deposit from a customer and failed to complete the agreed home improvements. He also withdrew over £11,000 from the company during liquidation. His actions:

• Left the homeowner with a half-completed home open to the elements
• Resulted in a 10-year director ban
• Led to an order to repay £10,000 in compensation

According to the Insolvency Service, this case is a reminder that directors have a legal duty to act responsibly during financial difficulty—and failing to do so can have serious consequences.

Why You Should Seek Insolvency Advice Early

If your company is showing signs of financial distress, here’s why speaking to an insolvency professional early is critical:

1. Avoid Legal Consequences

Trading while insolvent or misusing company funds can lead to fines, disqualification, or even imprisonment. Early advice ensures you comply with insolvency law.

2. Protect Your Reputation

Directors who act ethically in tough times protect their professional reputation, making it easier to rebuild or launch new ventures later.

3. Explore Rescue Options

Insolvency doesn’t always mean closure. Options like business restructuring, Company Voluntary Arrangements (CVAs), or administration may help save your business or reduce financial damage.

4. Fair Treatment of Creditors

Acting responsibly helps protect customers, suppliers, and creditors, reducing the risk of leaving others out of pocket.

5. Stay on the Right Side of the Law

There are strict rules around how insolvent companies should operate. Working with experts ensures your actions are legally compliant and future-proofed.

We’re Here to Help – Confidentially and Without Judgment

If you’re worried your company may be insolvent or nearing financial collapse, the best step is to talk to a professional sooner rather than later.

As experienced business advisors, we provide confidential and no-blame support to help you make informed, legal, and ethical decisions that protect you and your stakeholders.

Contact us today for a private chat about your situation. Taking that step now could save you from serious issues later. See: https://www.gov.uk/government/news/cheshire-builder-sentenced-after-taking-payments-from-customer-for-work-he-did-not-complete