Do you have a good business which simply needs a second chance? Does the following appeal to you?
- Write off all of your current trade creditors
- Write off your current PAYE & VAT bill
- Start a new business without existing historic problems
- Be able to sleep at night without your current money worries
- Stop any bailiff action
Then a low cost liquidation may be your solution! Contact us today on 0800 066 2280 to start the liquidation process.
Directors will typically opt to liquidate their company if the company is insolvent. There are 2 simple tests to establish whether or not your company is insolvent:
Test 1 – Balance Sheet Test
This is when the company’s liabilities exceed the value its assets.
Test 2 – Cash Flow Test
This is when the company cannot pay its debts as and when they fall due.
If either of these apply to your company then please contact us immediately for free advice as continuing to trade under either of these two circumstances could result in you being prosecuted for Wrongful Trading and could see you become personally liable for the debts.
There are 3 types of liquidation:-
Creditors’ Voluntary Liquidation (CVL) – also known as voluntary winding up is the most common process used to close an insolvent company, with the directors voluntarily liquidating the company. The assets or business are then sold on by the liquidator. Our insolvency Practitioners act as your Liquidators and the procedure can be commenced within as little as a couple of days.
We work with you to set up the liquidation, and the liquidator then deals with all matters including communication with creditors, meetings, company assets, creditors’ claims, paying out funds to creditors and other statutory requirements to close down your company.
The CVL Process
Creditors Voluntary Liquidation is started by the directors who instruct us to write to the shareholders to inform them that the company is not viable, it is insolvent and that it must stop trading. The directors then ask our licensed insolvency practitioners to set a decision date for shareholders and creditors to place the company into liquidation as soon as possible. On this decision date the creditors vote to appoint a liquidator.
Creditors Voluntary Liquidation is a very common, quick and powerful way to close a business and deal with things properly. The company is closed, leases cancelled and all the staff made redundant. You can then get on with a new business or job.
Once the liquidator has been appointed he runs the liquidation and realises any assets for the benefit of the company’s creditors.
As soon as a liquidator has been appointed, the Directors’ duties and obligations in respect of the company are effectively taken on by the Liquidator. The Directors are then in a position to make a fresh start, in the same line of business with a new Company, or they can exit the market and move onto new opportunities.
Once the liquidation is complete, the company is dissolved, struck off the register at Companies House, and ceases to exist.
Members’ voluntary liquidation (MVL) – this is a liquidation in which the shareholders of a company decide to put it into liquidation and there are enough assets to pay all the debts of the company, i.e. the company is solvent. An MVL is usually a more tax advantageous way of closing a company than simply dissolving it.
Compulsory liquidation – this is a liquidation in which the Court makes an order for the company to be wound up (a “winding-up order”) on the petition of a creditor of the company. The Official Receiver will then be appointed as liquidator and will seek to interview the directors in order to establish the company’s assets and liabilities. It is usually very difficult to continue a business following a Compulsory Liquidation.
Voluntary Liquidation, also known as winding up a company, refers to the process by which a company is brought to an end, allowing the directors to move on without the burden of historic debt.
Talk to Peter
Speak to Peter now on 0800 066 2280
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- Creditors Voluntary Liquidation (CVL)
- Members Voluntary Liquidation (MVL)
- Company Voluntary Arrangement (CVA)
- Compulsory Liquidation
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