If after a difficult period and numerous failed recurrence attempts, you have concluded that there’s no other option for your business than declaring insolvency, you may be currently researching the best methods of dealing with this situation.
Because not being able to longer pay off your debts can be followed by numerous complications, both legal and financial, it’s imperative to handle each aspect carefully and to adopt the best strategies. After looking into the subject for a bit, you will discover that numerous companies in your position have chosen to opt for an enterprise liquidation, and here’s why you should consider doing the same:
Existing debts can be written off
The most obvious attempt that should determine you to give this possibility more of your thought is the easy process of writing off your existing debts.
All unsecured business liabilities that you have not personally guaranteed will fall outside your responsibility, after your enterprise has been dissolved, and creditors have received their share through the sale of company assets. Liquidation will protect you from monetary worries linked to company debts, allowing you to redirect your focus towards other business prospects.
Personal liability protection
As a director, stressing over personal liability when having to dissolve your business is natural. Well, with the possibility of liquidating your limited company, peace of mind will be obtained in this department as well.
Because you are doing this voluntarily, and you will be discussing with a team of specialist in advance, in order to take the right steps, you will no longer be held accountable for wrongful trading or other issues that have brought your enterprise in this position. This will be essential if you ever want to regain your entrepreneur or director status sometime in the future.
Avoid being Court petitioned
Court proceedings are also something that may be currently stressing you out, and considering being petitioned by Court can bring various legal problems to the table, managing to avoid this situation is advised. Through voluntary liquidation, you will not be seen as a hostile actioner in the entire insolvency process, and legal procedure as well as Court calling can be simplified or avoided entirely.
Last but not least, because you are already in a delicate financial situation, being subjected to any other high costs is something you will have to avoid, and with company liquidation you will not have to worry about this aspect. Usually, the liquidation process will involve minimal financial requirements from your part, the practioners you will be collaborating with taking their part from asset sale.
As you can clearly see for yourself, choosing to liquidate your company at the right time can prevent you from dealing with further unpleasant inconveniences.
Because going into insolvency is certainly not a great prospect, doing everything you can to minimize your losses is of course recommended.
These are the factors that make this option such a popular solution. However, in order for the outcomes to be as beneficial as expected, make sure to collaborate with a reliable partner that can handle the process effectively and professionally.