Is Liquidation a Feasible Solution for Insolvent Companies?
If you’ve endured numerous failed recurrence attempts and have concluded there are no other options for your business than to declare insolvency, you may be doing a lot of research during this difficult time to find the best methods to deal with the situation.
This is because not being able to pay off your debts can cause complications, both legal and financial. Therefore, it’s imperative to handle every aspect carefully and adopt the best strategy for you.
You may soon find that many companies in your position have decided to opt for enterprise liquidation. Here’s why you might consider doing the same.
Write Off Existing Debts
One of the main benefits of opting for company liquidation is that it provides an easy process of writing off existing debts.
Any unsecured business liabilities not personally guaranteed by you, will fall outside your responsibility after the share of company assets has been received by creditors and your enterprise has been dissolved. Liquidation is going to protect you from the monetary worries linked to company debts, which will allow you to redirect focus onto other business prospects.
Personal Liability Protection
It’s natural to stress over your personal liability as the director of a dissolving business. Liquidating your limited company will give you peace of mind in this department.
As this process is done voluntarily and you’ll be consulting with a team of specialists in advance to ensure the right steps are taken, you won’t be held accountable for wrongful trading or any other issues that have brought your enterprise into this position.
You’ll Avoid Being Court Petitioned
If your enterprise is struggling financially, you may be stressing over the possibility of court proceedings and any associated complications. Through voluntary liquidation, the legal procedures, as well as any court callings, will be simplified or avoided entirely. This is because you will no longer be seen as a hostile actioner.
Irwin Insolvency helps deal with enterprises going into insolvency. With our vast experience, we’ll assist you with all the necessary procedures. Contact us today to discuss your financial situation.