A Voluntary Liquidation will Write-off Debts
What is liquidation?
Liquidation is the process of winding up your company’s affairs when it has either reached the end of its useful life, cannot pay its debts when they are due or its assets are less than its liabilities.
What are the benefits of voluntary liquidation?
The benefits can vary depending on your company and your reasons for going into voluntary liquidation but you can expect the following:
- Write-off debt
- Stop pressure from creditors
- Ability to start a new company
- No personal liability
Do you deal with the liquidation of my company?
Yes we do, in fact that is all we do. Our insolvency practitioners specialise in dealing with the liquidation of companies in a fast, confidential and considerate manner. We know placing your company into liquidation is a tough and difficult decision and you want help from someone who understands this. We understand the difficult decisions you face every day as a business owner and because of that we are perfectly placed to help you liquidate your company.
Are there any alternatives to liquidation?
Yes there are. You may not need to liquidate your company, the problem may be resolved by buying you some time or raising some finance, but if you do need something like a liquidation, then maybe an administration, a Creditors Voluntary Liquidation or a prepack administration is the best solution. When you call, we will be able to help you determine the best course of action.
What does a liquidation cost?
The cost of liquidations can vary dramatically depending on the size, complexity and type of liquidation, e.g. a court based liquidation could cost £3,000 or more, a solvent liquidation may be as little as £2,500, but an insolvent liquidation could be £5-£15,000. Our Liquidation fees start at £2,995. Call us to discuss your requirements and see if a liquidation is appropriate, and we can provide you with a free quote.
What are the consequences for me of a liquidation?
Being a director of a company that has gone into liquidation does not mean that you are automatically barred from being a director of another company, in fact the only times you cannot be a director are when you are bankrupt or have been disqualified.
Being connected with a company going into liquidation does not affect your personal credit rating, you will be liable for personal guarantees you have given.
You will also be subject to a return to the Insolvency Service regarding your conduct as a director. This happens in all liquidations, so do not worry that the voluntary liquidation process is any harder than any other option.
How do I enter a Voluntary Liquidation
A Lucas Johnson insolvency practitioner will go through alternative options with you including a CVA or prepack administration. When you understand the all options and have selected which way you want to progress, our insolvency practitioners will explain the next step depending on your business structure. Call us today and we can run through everything with you.
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