Creditors Voluntary Liquidation
When your company becomes unable to pay its way, the directors and shareholders may place it into liquidation. It's a form of bankruptcy for companies. The assets in the company are then Liquidated to pay the creditors.
Members Voluntary Liquidation
If your company is solvent, it may still make sense to liquidate it. For example, it may have outlived its original purpose, and shareholders may want to unlock their investments. In this scenario, a liquidator will be appointed by the shareholders.
When is it time to liquidate?
Maybe your company's financial position is making trading impossible, receiving creditor pressure and facing legal action, or there is less demand for your company's products or services. Therefore making the company no longer viable.
Alternatively, if you are due to retire and want a change in profession and wish to unlock your investment then liquidating can be the answer.
Benefits of Liquidation
Financial problems are stressful and there's no getting around that. But liquidation can help you deal effectively with the stress and salvage as much of your business as possible.
Among the many benefits are:
- Pressure from creditors is quickly relieved
- No further legal action against you (Including bounce back loans)
- If assets are sufficient there may be nothing to pay up front as our fees can be paid by realisation of those assets
- Much reduced likelihood of legal action against company directors
- Your employees can claim any unpaid wages and redundancy entitlement from the government
- You can start up a new company, including use of asset of the old one by buying the assets and even the rights to the name
Raven & Co Recovery Ltd
Toad Hall Barn, Barthomley , Crewe, CW2 5PQ
Telephone: 01270 904338 Email: info@ravenandco.uk
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