What debts are written off on liquidation?

The following liabilities (also called unsecured creditors) are written off on liquidation:

• Trade suppliers.
• Utilities.
• VAT.
• PAYE.
• Corporation tax.
• Unsecured bank debt like Bounce Back Loans.
• Business Rates.
• Employee claims including arrears of pay, redundancy and tribunal claims.

The debts not written off by liquidation include:

• Secured debts such as hire purchase.
• A debenture as the lender has security on the company assets.
• Debts you have personally guaranteed such as a bank overdraft.