Email David Kirk direct by clicking on his name.

Search
Close this search box.

Effects Of Liquidation On A Business

Last updated: March 30, 2021

The quick answer

The effects of liquidation on a business means that it will stop trading and the powers of the director’s will cease. The directors are replaced by a Liquidator whose job it is to realise the assets of the business for the benefit of all the creditors. All of the employees are automatically dismissed.

In more detail

EFFECTS OF BUSINESS LIQUIDATION

Liquidation will stop a company from trading. It can be very useful if you want to stop trading losses mounting up and you want to make your employees redundant so that they can claim from the Government Redundancy Payments Service.

The other effects of liquidation are:

  • No more need to prepare accounts.
  • No need to do VAT returns, PAYE returns or tax returns.
  • No need to file accounts at Companies House.
  • The company bank account will be frozen. 
  • As directors you are free to go off and do something else.
  • It brings a company to a formal and legal end.
  • Creditors can no longer pursue you unless you have given personal guarantees.

It is an effective way of reducing stress and retiring. 

tip

If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

More questions in this section

Author: David Kirk - ACA FABRP
Everything you need can be done online.
No need to meet anyone in person.
We cover all of England and Wales.
Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott (14th December 2021)

Menu

Newsletter

Sign up to our newsletter

Request a callback

Simply fill out the short form below and I will get back to you.

David Kirk Portrait

David Kirk

Licensed Insolvency Practitioner

https://wpmudev.com/project/wp-defender/