Choosing liquidation means your company debt does not have spell the end of your business dreams.
Voluntary insolvency can provide the opportunity for directors of companies which are in difficulties to cut their losses and start again.
We know it can be a stressful time, but with the right support, voluntary liquidation can be a positive way to close your company and give you the relief you’ve been seeking for some time.
It is a big step and as a liquidation specialist, we know you want to be sure that voluntary insolvency is right for you.
So we have put together this handy guide to help you understand the process and what it can do for you.
How do I know voluntary insolvency is right for me?
There are two questions you can ask yourself which give a good indication as to whether liquidation is right for you:
- Can you think of no other realistic way to repay the debts your company owes?
- Have you had enough of the stress and feeling the burden of your company debts?
If your answer is yes to both of these questions then it is definitely worth exploring voluntary liquidation.
How will voluntary liquidation solve my problem?
When your company is in debt, voluntary liquidation sees the company’s assets — if it has any — sold in order to pay something back to your creditors. This can amount to very little if anything at all.
Once your creditors have been paid, the balance of debts is written off, your company is officially closed and you are free to do as you please.
And as a director you have a number of options to choose from…
As a director, what choices will voluntary insolvency leave me?
Closing your company through voluntary liquidation gives you the option of leaving the mistakes of your old company, as well as your unsecured debts, in the past, and provides the opportunity to start again with a clean slate.
Alternatively you can buy the assets of the old company and use them to start a new company.
We know choosing voluntary insolvency is a big decision so if you’d like to know more about how it could work in your particular circumstances please do give us a call.