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.
Liquidation
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 be written 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 and could also mean a substantial redundancy payout for the Directors. Call us now on 0800 014 1486 and see if you qualify!
How much will liquidation cost? Try our free...
If you are being threatened by creditors and have outstanding bills, you need to take immediate action. If the problem is not addressed quickly it may be too late to save your business and you could become personally liable for the debts. At The Insolvency Practice we can ensure you remain protected and show you the best way to clear your business debt.
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