Liquidation – The advantages of liquidation
If you are considering voluntary liquidation, then you should weigh up the pros and cons of the liquidation process first, to decide whether or not liquidation is right for your business
There are a number of advantages to liquidating your business.
- Liquidation happens to the company, not the individuals.
- There are no costs implications regarding a compulsory liquidation as the petitioning creditor pays the costs.
- Management of the liquidation is passed to the Liquidator, relieving the directors of some of the stress involved in a liquidation.
- Once your company is in liquidation, its creditors cannot take any further action against you.
- It removes the threat of directors personal liability under trading while insolvent legislation.
- Unsecured debt is written off, including any tax liabilities
- Any legal action against the company is stopped as soon as the company closes.
- It has no bearing on the directors and, in most cases you are able to get on with your life as if it had not happened.
- If you want to go back into business, then you can.
There are some advantages for your creditors too.
- They can force your company to cease trading.
- The Liquidator conducts a comprehensive investigation into the affairs of the company and the conduct of the directors.
It is really important that you also look into the disadvantages of liquidation and the alternatives to liquidation before making the decision to liquidate your company.
Remember: Not all companies in liquidation are insolvent.
- Liquidation – What is liquidation?
- Liquidation – The liquidation process
- Liquidation – Voluntary and involuntary liquidation
- Liquidation – The disadvantages of liquidation
- Liquidation – The alternatives to liquidation
- Liquidation – Winding up a company
- Liquidation – I am owed money by a company in liquidation
- Liquidation – Insolvency and liquidation
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