Have you ever been owed money by a company, but when you attend
to calling in your debt, the company suddenly has no assets and has
been deregistered?
This is a trick of the trade where a new company is registered
to take over an insolvent or failed company. This can be legal,
where the directors have genuinely managed the business
responsibly, but the business has failed and an external
administrator becomes involved.
However, illegal phoenix activity is where a company is
deliberately stripped of assets and deregistered to avoid paying
creditors and having the company's assets liquidated to pay
creditors. Of particular concern is the use of serial deliberate
insolvency as a business model to avoid paying company debts.
