There is a solution, it is called creditors voluntary liquidation; Wayne Harrison of KSA CompanyRescue answers your questions
What does liquidation mean and how does it work? How to people go about winding up a company?
FIRST the simple description of a creditors voluntary liquidation (CVL).
What is liquidation? Many people ask us this and it’s really a straight forward answer: creditors voluntary liquidation or compulsory liquidation means the end of the company and its assets are then “liquidated” or turned into cash for the creditors if any assets are available.
It is quick, relatively painless for you and CVL brings an end to worry, if you have acted properly, and it will allow you to get on with your life. It is inexpensive, company assets can be used to pay for it and within 3 weeks the worry can end.
Usually the company has run out of cash, it cannot pay its debts on time and the directors are concerned that the business is simply not viable. They are also very worried about Wrongful Trading and personal liability. (See our free guide on our main website).
If this is your company, the right course of action is to stop trading and close the business. Do you want help to do this? Call KSA and we will arrange for one of our licensed insolvency practitioners or one of his managers to call and arrange a free meeting.
If the directors decide to call it a day, they ask the insolvency practitioner (IP) to call a meeting of creditors, then he is appointed as liquidator by the creditors at a creditors meeting. The IP will deal with the remains of the business. Directors get on with their lives and often that’s the end of that. Sometimes a phoenix is proposed.
What is a “Phoenix”?
You can liquidate a company and start the same business again, but only under strict rules and conditions. This is a potential legal “minefield” and you need to take proper advice. DO NOT USE the same name or similar name as this can be a criminal offence. Call us if you want more details.
Not sure if the company can be viable?
Before you decide on liquidation as the correct option, you should also consider whether your company can be viable if radically restructured and, if so, how can you get help. If there is a viable business in there but you are tired and distressed we can still help. Many people call us saying liquidate my company please! Then once we take away the pressure and look harder at the business problems we can often see a solution. This could be a company voluntary arrangement.
Because KSA CompanyRescue is on the outside looking in we can often see possibilities that you cannot. We are also experts at using the law to restructure companies, so call us and discuss liquidation versus the GO options. Our advice is always this: consider all other options before deciding to liquidate!
Clearly, if you have decided to liquidate, we can help you with the process quickly and with understanding. One of our London insolvency practitioners can start the CVL process as quickly as today for you if that’s the right decision.
Someone said I cannot be a director of another company if we go into liquidation?
Sorry, that’s complete and utter nonsense! Providing you have not been made bankrupt or disqualified, you can be a director of as many companies as you like. Do not listen to the “man in the pub” phone us now for expert advice at no cost.
Want more detailed guides to liquidation? Download our UNIQUE free 50 page PDF –The Expert’s Complete” Guide to Liquidating an Insolvent Company We are the only firm in the UK that gives free advice and free guides with no strings attached
You could talk to me, an expert insolvency practitioner today about liquidating your distressed company!
Want to speak to a friendly trained advisor? Call our advisors now on 0800 9700539 or call me Wayne Harrison (IP) on 020 7877 0050 now.