Being the Director of a liquidated company doesn't exclude you from statutory entitlements. In the right circumstances you can claim...
Despite the rumours of a slow economic recovery, Company Liquidations are at an all time low since 1984. This is great news for businesses as new businesses are still starting up. 3,368 firms were liquidated between July and September 2014, this is a 12% fall compared to last years figures and the lowest quarterly total of liquidations since spring 2008. There were also 492 administrations in the same quarter which is a 17% jump from the spring quarter but a 19% drop from the same period last year. The number of people going bankrupt is also at the lowest for 14 years. Liquidation rates peaked following the economic ‘credit crunch’ in 2008 and 2009, the fact liquidations are going down is positive for business owners and shows that we are starting to recover from this very long recession. However, it is important not to be complacent as it is possible that interest rates and business rates may start to increase, therefore putting added pressure on business owners.
To avoid liquidation it is important to make a clear business plan with a cash flow calendar (as much as is possible). Also, if you feel your business is insolvent there are other options to liquidations such as Company Voluntary Arrangements (CVAs), Individual Voluntary Arrangements (IVAs) or Debt Relief Orders (DROs), these are cheaper and less damaging. Debt Relief Orders (DROs) were introduced in 2009 to help people whose combined debts are less than £15,000 to be declared insolvent. DRO’s have risen by 2.7%. It is very important for business owners and individuals to get early advice as there are many other options than just liquidation. Getting insolvency advice early is key to business recovery. .