Liquidation probably feels a little intimidating right now, let’s face it you’ve worked hard to get your business up an running, and now you’re looking at closing it.
Before going much further, you will want to make sure that it’s the right choice for you, let’s not through the baby out with the bath water here.
Is Liquidation right for you?
For many businesses liquidation is the right solution for their situation. Whatever the cause of your problems, liquidation is right if:
- Your business is long term insolvent.
- You have no realistic way to repay your creditors.
- You would like to start the company debt free as part of a recovery procedure.
- You’ve had enough.
The benefits of Liquidation are:
- You can start again with a clean slate.
- It doesn’t mean that you have to give up in business, for many directors it can be the beginning of something new.
- You aren’t liable for the unsecured debt, even tax debts owed solely by the company dies with it.
- You are usually able to buy the assets of the company out of liquidation.
Is my Company Insolvent?
Sometimes it can be difficult to gauge if your business is Insolvent or not.
There are so many different opinions on the matter, yet, when it comes down to it, all you have to do is ask yourself:
Can I pay the bills as they fall due?
If the answer is ‘Yes’ then you are not Insolvent – if you still want to look at closing your business then it is a Solvent Liquidation (MVL) or Dissolution.
If it is no then your business could well be considered to be Insolvent, and this means your responsibilities as a director changes.
Is this a long term problem?
It is tempting to say that you could get a lot of sales in next week, and that will change the whole situation. It probably would as well, but ask yourself how likely is that to happen.
If you have a temporary cash flow problem then a Liquidation is probably going to be overkill, you would probably be better with a Voluntary Arrangement or an informal agreement with your creditors.
How can we help
Unlike other Liquidation Companies, our entire service is geared towards helping you as much as possible, without breaking the law .