Mr Chambers, Wrexham

“The other companies I spoke to never even mentioned director redundancy - I can't believe I was entitled to over £9,000! Thank you.”

Liquidation involves the sale of company assets in order to settle debts and finally the closure of the business.

Of course when a company is insolvent there will be insufficient funds to pay creditors in full and any remaining debt (including HMRC) will remain unpaid when the company is struck off. If the company is solvent and has excess cash (and other assets) this can be extracted in the most tax efficient way using a Members Voluntary Liquidation (MVL).

To find out if you qualify for an MVL please try our free 60 second test.

If a company is struggling with debt then liquidation comes in two forms. A Creditors Voluntary Liquidation (CVL) is brought about by the company itself and is administered by a Licensed Insolvency Practitioner. A compulsory liquidation is brought about by an order of the Court and is supervised by the Official Receiver.

Any creditor owed at least £750 (often HMRC) can petition the court via a winding up order. Compulsory liquidation is often expensive and considerably more damaging to the company and directors; it should be avoided at all cost.

Liquidation can be a daunting prospect but done properly a Creditors Voluntary Liquidation will protect your interests and allow you to move on. It will clear all outstanding debts due by the Company and protect the redundancy payments due to the employees…which may include the Directors. Call us now on 0800 014 1486 and see if you qualify!

How much will liquidation cost? Try our free...

Case Study 1 – Security Services Company

Contracts had not been costed properly and the accounting system was non existent. The company was leaking money and when we scratched the surface it was clear that large debts had built up.

Case Study 2 – Builder

The downturn in the housing market saw a major change in fortunes for this company. Contracts disappeared and existing projects were scaled back. Having taken on employees and bought additional equipment during the housing boom this left the business in an impossible situation.

Case Study 3 – Florist

Like most businesses this limited company saw a fall in sales as the recession took hold. Flowers were seen as a luxury item and with money tight customers dried up. The bigger wedding and corporate buyers also began to spend less.