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The decision to liquidate your company is not an easy one and usually is made after many sleepless nights worrying about company debts and the future of your business.
Should you Liquidate your Company?
Only you know the answer to this, and to work it out you need to face facts and ask yourself some hard questions.
- Worried about paying employee wages?
- Stressed and losing sleep over your business?
- Using your own money to pay company bills?
- Avoiding letters and phone calls in case they are creditors chasing payment?
- Concerned about debt collectors and bailiffs turning up at your door?
If you answered yes to any or all of the above questions then your business could be in trouble. This does not necessarily mean you need to liquidate your company but it is time to get help and advice from someone who knows about debt management, business recovery and can tell you your insolvency options if necessary. Poor cash flow and not having enough money each month to pay minimum repayments is a slippery slope to compulsory liquidation, compulsory liquidation is where your creditors put in an application for your company to be wound up. This is a very stressful time for company owners and they are leaving their business and business assets in the hands of their creditors. If Liquidation is inevitable then it is much better start the application yourself and take control of the process, using a licensed Insolvency Practitioner. The sooner you get Insolvency the advice the sooner you will be able to sleep easily, if you get advice early on their is no reason why you cannot recover your business from debt and set up company voluntary arrangements, this way you can continue trading through the hard times and into profit. If you do feel the best option is to wind up the company then it is better to start the liquidation process yourself through creditors voluntary liquidation, this way you may even have the option to by back your assets and start a new company debt free. This is a much better option than having to finance your company debts yourself and worry about employees salaries.
