Closing Down

Same Day - Initial "FREE" advice -In total Privacy online - Confidentiality Assured

Covid-19 affecting your business? Same-day Rescue & Recovery Options Available.

Free Director Advice & Support TODAY.

Our Licensed Insolvency Practitioners offer Confidential Safe Advice online.

Why Do Limited Companies Enter Liquidation

Book a Virtual Meeting - Free Confidential Advice
If you need help understanding the best way forward for your company, we can provide confidential free initial advice. You can book a free virtual meeting or call us on 0800 612 5448.

Why Do Limited Companies Enter Liquidation

Why Do Limited Companies Enter Liquidation? The company can no longer pay its creditors when due?

Failing to pay your companies creditors as and when they fall due is a clear indicator of your companies insolvency.

Company directors are required to cease trading immediately while ensuring no further credit is taken from creditors when knowing the companies’ inability to pay their debts.

Business liabilities exceed total assets.

When your companies liabilities exceed its assets, then it may be considered insolvent. 

The directors would like to see someone else deal with the companies creditors and their claims.

A liquidator’s appointment to close a company shifts the burden immediately from the directors while avoiding further claims on preference claims.

The business is making losses, and you don’t think you can reverse the situation.

Doubt over the viability of the company in the future may give rise to a company’s liquidation. Ongoing losses eat into working capital, and no plan offers a turnaround to profit that causes closure.

My Bounce Back Loan Top Up was declined.

Many companies faced refusal when applying for a top up of their first bounce back loan. For further detailed reading, please view ‘bounce back loan top up declined’.

Directors find it challenging, coping with the stress and pressure of trading.

The current Coronavirus COVI19 pandemic is inescapably tricky for company directors fighting against insolvency and facing wrongful trading and preference payments claims. Committing to a company in liquidation may help them remove any exposure to mental health issues.

Company Directors are concerned that trade is declining and you are liable for unlawful trading if you continue.

A company that faces declining sales due to long-term changes in its market, or that must say it is switching from its product to a new product. This can induce directors to call it a day as long as the situation is stable, rather than drifting into a severe condition where creditors are needlessly losing out. 

Workers entitled to severance pay, unpaid salary, leave, and redundancy benefits can turn to the State Compensation Service. 

Former company directors can usually claim subject to conditions met.

bounce back loan has run out
bounce-back-loan-has-run-out
bounce back loan has run out
bounce back loan has run out
Business Recovery & Rescue.
FREE Insolvency Advice
Sourcing New Funding

    Get Help Today
    1. Name: (*)
    2. Company Name:
    3. Telephone: (*)
    4. Email:
    5. Message:

    *Required Fields

    CALL TODAY FOR
    EXPERT CONFIDENTIAL ADVICE

    0800 612 5448

    Further Reading