How Do I Stop Compulsory Liquidation Happening To My Business?

The quick answer In most cases, if your business is being pushed into liquidation, it is normally because you owe someone (a creditor) more than £750. The easiest way to stop the process is simply by paying them in full. The alternatives are a Court hearing if you dispute the debt, asking for an adjournment […]

Advantages And Disadvantages Of Liquidation

The quick answer Liquidation is a very useful way of closing a limited company that is no longer able to trade due to its debts. It should not normally be used where the company is solvent, or when the business in the limited company can be restructured or saved (administration or a CVA is usually […]

Why Should I Liquidate An Insolvent Company?

The quick answer The main reason to liquidate an insolvent company is to make it ready to close down. The main advantages to doing this are: Creditors should stop chasing you for money. As a director you can go off and do something else. Employees will be able to claim redundancy. There is no longer […]

What’s The Difference Between Liquidation And Dissolving A Company?

The quick answer Liquidate means a formal closing down by a liquidator when there are still assets and liabilities to be dealt with. Dissolving a company is where the business is struck off the register at Companies House because it is now inactive. The two are very different processes. Liquidation means you need a Licensed […]

What Rights Does A Creditor Have In Liquidation Or Bankruptcy?

The quick answer Creditors have various rights. One is to be kept informed so they should receive reports on the progress of the liquidation or bankruptcy. This should be at least annually. The second is to be paid back some or all of the money they are owed if sufficient assets are realised in the […]

What Is Compulsory Liquidation?

The quick answer Compulsory Liquidation is the process for a creditor (someone owed a debt) to use to force a company into liquidation in an effort to make it pay back the debt. It can also apply to Limited Liability Partnerships in the same way as limited companies. Compulsory Liquidation is controlled by the UK […]

What Is A Section 110 Scheme Of Arrangement?

The quick answer This is a solvent liquidation process that allows you to reorganise a company into two or more new companies in order to allow the trade to be split or the ownership of the shares to be split. It is often used to split up inherited family companies (and these are often farming […]

What Is A Creditors Voluntary Liquidation?

The quick answer A Creditors Voluntary Liquidation (also known as a CVL) is where a business closes due to insolvency and goes into Liquidation. This usually happens because the company is loss making and can no longer be made profitable or the owner does not wish to continue trading. Directors (or partners in an LLP) […]

What Does Liquidation Mean For My Business?

The quick answer If a business goes into liquidation it means: The business stops trading with immediate effect. The employees are all made redundant. The assets of the business will be sold to pay creditors. In order to liquidate a company, a Licensed Insolvency Practitioner like us will be required. It usually takes around ten […]

What Does Liquidation Mean For Directors?

The quick answer When a company goes into liquidation the directors’ powers immediately cease. From this point onward directors can no longer make payments, order or sell goods, sell assets or issue orders to any employees. They will also no longer be paid but they still have a legal duty to assist the liquidator. In […]