Liquidation is usually the last resort for many companies as following its conclusion, it ceases to exist.
The majority of Directors look to close their company if the company is unable to pay its debts and has looked at other formal insolvency solutions available.
Liquidation is a terminal process to end the life of a limited company and brings about its closure. The process will involve selling and collecting in the assets for the benefit of the outstanding creditors and/or shareholders. At the end of the process the company will be dissolved and cease to exist. Any remaining debts owed by the company will be written off unless the Director has given personal guarantees.
If you feel your company’s position is worsening, always seek early advice as more solutions will be available the quicker you take action.
Abbey Taylor is qualified to advise and assist in this area.