Contact David Kirk by clicking on his name to email him a question or call 01392 474303

01392 474303

What debts are written off on liquidation?

The Quick Answer

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.

The answer in more detail

Although liquidation brings the company to an end the unsecured creditors can still claim on the company assets that are left. They can claim after secured and preferred creditors and expect to get a payment equally from what is left.

Author: David Kirk
Everything you need can be done online.
We cover all of England and Wales.
David Kirk

Request a callback

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

David Kirk - Kirks Insolvency Call Back

David Kirk

Licensed Insolvency Practitioner