What are the pro’s and con’s of Liquidation?
Before you liquidate your business, you should be aware not only of the good bits but also the bad bits!
The Good Bits
- Unsecured debt is written off. Unsecured debt includes everything you have not given a personal guarantee for or a debenture on, or any other form of security. This means most of your business debts can written off in one easy motion.
- You avoid any issue with wrongful trading. Wrongful trading is caused by trading a company insolvently without ‘a reasonable opportunity for it to become solvent’. Which means it is rare for a director who liquidates a company to pick up a ban.
- You can start again. Most directors will start again in business, liquidation does not normally stop you from doing this.
- You can buy the assets of the company back. The job of the liquidator is to get the best return for creditors, and so if you make an offer to buy the goods it has to be looked at.
- Personal Guarantees will come into effect. If you have given personal guarantees on any money the company owes, they will now coming asking you to pay the debt. This doesn’t mean they will want the whole amount in one go.
- You can’t keep Liquidating companies. Eventually HMRC will flag this up and you will have to go and get a job instead.
How can we help
Unlike other Liquidation Companies, our entire service is geared towards helping you as much as possible, without breaking the law .