Simple Liquidation

The voluntary administration process is one of the most effective tools for the directors of companies in financial distress to protect their positions. It can help the company to prevent itself from overwhelming pressure from creditors chasing you to pay debts. In the UK, if you want to use this process to save your business, you have to file a notice stating your intention to appoint an administrator. Directors of the company can use this process as a tool to evade any legal action by the creditors if it is suffering from a financial crisis. An administrator is appointed by the company to formulate the restructuring plan by taking over the complete control of the business from its directors. The administrator can put the company assets for complete or partial sale depending on the arrangement he makes to pay the debts of the creditors. How administration works Once the directors of a company appoint an administrator, it is his responsibility to notify the creditors and Companies Hou...

The year 2020 is definitely the annus horribilis for many businesses throughout the UK. From the national lockdown in March and on to the current day, there are very few businesses that have not been adversely affected by the coronavirus pandemic. Licensed insolvency practitioners have never been so busy.   Businesses across all industries are struggling to stay open. Seeking the advice of an  insolvency practitioner  does not necessarily mean that the company is about to enter administration or be in the position of progressing to liquidation. In fact, it is better to seek help from an insolvency practitioner sooner rather than later as there is a range of  corporate recovery services  to consider which may also be viable options. What is corporate recovery? Before we look at the various  corporate recovery strategies  that could potentially rescue the business, let’s understand what corporate recovery means. From the moment you contact a licensed ins...

Whether a company is solvent or insolvent, it is not possible to liquidate a company yourself. Any company liquidation must be handled by a licensed insolvency practitioner (IP).  Unless the company has been issued with a winding up petition by a creditor, the directors of the company make the decision to liquidate it and instruct an IP. So, let’s look at how to liquidate a company. Types of company liquidation There are three types of company liquidation in the UK: Compulsory liquidation Creditors’ Voluntary Liquidation Members’ Voluntary Liquidation With a compulsory liquidation, an insolvent company has been forced to liquidate by their creditors. In a Creditors’ Voluntary Liquidation (CVL), the directors have made the conscious decision to liquidate an insolvent company. For a Members’ Voluntary Liquidation (MVL), the directors have made the decision to close a solvent company. Can I liquidate a company myself? In the UK, you are not allowed to liquidate a company yourself. The...

If your business is facing financial issues and you are threatened about its insolvency. Then you need to look forward to the insolvency practitioner services . IP professionals can help you by analysing your business, figure out the financial risks which affect your business, and help you through voluntary procedures. So, it's very important to choose an experienced and skilled advisory service. Simple Liquidation has over 30 years of experience and has dealt with hundreds of solvent and insolvent businesses throughout their careers, helping directors to meet their obligations and reduce the stress of dealing with an insolvent company. You can call us on 0800 246 5895 for information about the insolvency process 24/7. You can also find the answers to most questions on our website.

In some situations, the directors of a solvent limited company may want to close the business. For example, it may be for tax reasons, the company may be part of a larger business and is no longer required, or the directors may simply wish to retire and there is nobody to take over the business. Whatever the reason, the directors can choose to enter a Members Voluntary Liquidation process .