If you’re being chased by debt collectors, HMRC, or facing pressure from bailiffs, it’s a sign that your financial situation requires immediate attention. Whether you’re a company director, a sole trader, or someone managing personal debt, knowing your rights and understanding the available options is crucial. The good news is that you are not alone, and there are proven steps you can take to protect yourself and your business. We’ve recently been meeting people locally in Manchester, and understand the urgency many are facing in the area. Manchester has been particularly affected by recent economic pressures, and we’re here to help.
Understanding Who Is Chasing You
Debt collectors, bailiffs, and HMRC enforcement officers all play different roles:
- Debt Collectorsare usually third-party agencies hired by creditors to recover unpaid business or personal debts. They can contact you by phone, email, or letter, but they do not have the same powers as bailiffs.
- HMRCmay pursue unpaid tax, VAT, PAYE, Bounce Back Loans, or Corporation Tax through enforcement methods if communication is ignored. HMRC has the power to issue notices, freeze bank accounts, and initiate winding-up petitions.
- Bailiffs(also called enforcement agents) are authorised by the court to collect certain debts. They can attend your business or home to recover goods, but there are rules and limitations around what they can do.
Understanding which type of agent is chasing you helps determine how to respond. If you are unsure, contact a reputable insolvency firm for advice.
What Are Your Immediate Steps?
- Do Not Ignore the Problem
Avoiding letters or visits from bailiffs or HMRC will not make the problem go away. In fact, it may escalate matters. Prompt action shows willingness to resolve the issue, which may result in more flexible options. - Seek Expert Insolvency Advice
Professional advice from licensed insolvency practitionerscan make all the difference. They can assess whether your business is insolvent, help you understand your liabilities, and advise on the most appropriate solution, such as a Company Voluntary Arrangement (CVA) or Creditors Voluntary Liquidation (CVL). - Open Communication Channels
In some cases, creditors and HMRC are willing to negotiate payment plans or a Time to Pay Arrangement (TTP). Open, honest communication supported by a professional can help you secure more time and avoid enforcement action. - Know Your Legal Rights
Bailiffs cannot force entry into your residential property on a first visit, and they cannot take essential items or goods that do not belong to you. If you are receiving threats or facing aggressive behaviour, report it and seek legal advice immediately.
Common Business Debt Scenarios We Help With
At The Insolvency People, we work with company directors and small business owners facing:
- Unpaid business loansand commercial finance arrears
- Overdue VAT and tax debtto HMRC
- Outstanding Bounce Back Loans
- Court judgments (CCJs)and winding-up petitions
- Personal guaranteeson company debt
- Unmanageable creditor pressurefrom suppliers and banks
- Threats of legal actionfrom former employees or landlords
If your company is no longer able to meet its obligations as they fall due, it is likely insolvent. In that case, continuing to trade could lead to wrongful trading, putting you personally at risk. We can help you close your company in the right way and shield you from further legal consequences.
Formal Solutions to Stop Creditor Action
Here are some of the most effective solutions depending on your situation:
- Creditors Voluntary Liquidation (CVL): A formal closure of an insolvent limited company. Directors can walk away from debt, and creditor pressure is stopped immediately.
- Company Voluntary Arrangement (CVA): Enables you to repay debts over time while continuing to trade. Suitable for companies that are viable long-term but under short-term financial pressure.
- Administration: A legal process to protect the company from legal action while restructuring or selling the business.
- Individual Voluntary Arrangement (IVA): For sole traders or individuals with unmanageable personal debt, this legally binding agreement can write off a portion of debt and protect assets.
Every case is different, and our team of insolvency specialists can help you find the best way forward.
Can HMRC Send Bailiffs?
Yes, HMRC can send enforcement officers to recover debt. If your business owes tax, Bounce Back Loans, or VAT, they may issue a Notice of Enforcement. If this is ignored, bailiffs can be instructed to seize goods, or they can apply to the court for a winding-up order to shut your company down.
The key to avoiding this is acting early. We regularly help directors enter into Time to Pay Arrangements or manage HMRC debt through formal insolvency procedures, avoiding asset loss and legal action.
What If I Have Personal Guarantees?
Many directors are worried about personal liability due to personal guarantees on business loans or leases. In some cases, lenders will pursue you personally even if the company goes into liquidation.
We can help you:
- Understand your exposure
- Negotiate with lenders
- Enter personal insolvency arrangements if necessary
We’ll help protect your assets and guide you through the right steps to minimise personal impact.
Why You Shouldn’t Wait
Delaying action can result in:
- Company bank accounts being frozen
- Assets being seized
- Legal action or winding-up petitions
- Damage to your credit rating
- Risk of director disqualification
Taking action early gives you more control and more options. We’ve seen this first-hand working with clients across Manchester who’ve successfully turned their situation around with our help. Our face-to-face meetings in Manchester have helped many business owners explore practical, effective solutions.
How The Insolvency People Can Help
At The Insolvency People, we provide fast, confidential, and practical help to people facing:
- Bailiff threats
- HMRC enforcement
- Creditor pressure
- Business debt
- Personal liability concerns
We’ve been actively meeting business owners throughout Manchester to provide guidance on Bounce Back Loan debt, creditor action, and business closure. Whether you’re in the city centre or surrounding areas, our team is here to support you locally. Our Manchester team is experienced, approachable, and understands the local business climate.
We offer free initial consultations and will explain all your options in plain English. Whether you need to close your company, restructure your business, or deal with personal guarantees, we’re here to help.
Speak to an Expert Today
If you’re being chased by HMRC, bailiffs, or debt collectors, don’t face it alone. Contact The Insolvency People today for honest advice, fast action, and professional support.
Call us now or complete our online form for immediate help. We’ll get to work right away, so you can move forward with clarity and confidence.
We are proud to support the Manchester business community and provide tailored advice to help directors across the region regain financial control.