Businesses have good days and bad days. On some occasions, they’d encounter a day worse than others. Case in point: When there’s too much pressure coming from the company’s creditors. If you find yourself stuck in the same situation, you might already be asking: Is it high time to liquidate my company
Liquidating a company means ceasing your trading operations and liquidating your assets to repay what your business owes. A liquidation can be voluntary and involuntary — the former being the wiser path to pursue.What Is voluntary liquidation
The creditors’ voluntary liquidation (CVL) is the most common liquidation form. Unlike its involuntary or compulsory counterpart (where your company will be forcibly wound up after your creditors file an application to the court), CVL will allow your company’s director to appoint the licensed insolvency practitioner of their own choice.
This practitioner will be the one to ensure that every step of the process is being conducted in an orderly manner. He or she will also be helpful when it comes to following certain legal obligations you as a company must fulfill. To avoid conflicts, your insolvency practitioner will also help communicate with your creditors and make sure that their legally acknowledged demands are met.What Are Its Advantages
"What if I get to voluntarily liquidate my company?" If you’re asking this question, you’d be glad to know that CVL offers many advantages over compulsory liquidation.
You have more control. With CVL, your company’s directors will have an upper hand. As mentioned, they’d get to appoint the liquidator and they get to choose when to enter liquidation. The key here is to decide swiftly if you’re going to liquidate the company or not.
You can minimise debt repayments. With the sale of your company’s assets, you’d be able to write off a significant amount of your debt. You’d only have to deal with much lesser things, like the cost of your creditors’ meeting and your company’s "Statement of Affairs."
Your staff will be able claim redundancy pay. If you voluntarily liquidate, your practitioner can help you facilitate making your staff redundant. This will enable them to claim redundancy pay, any outstanding holiday pay and other wages. The money will come from the sale of your company, but if it won’t be sufficient, it can come from the National Insurance Fund.
You can keep your reputation protected. Because you’re putting your creditors’ interests first during a CVL, you’re essentially protecting your company’s reputation until its demise. With a CVL, you will avoid getting wrongfully accused with trading allegations that come with the insolvency of a business.Get Help From London’s Finest
Bridge Newland Limited is home to the finest voluntary liquidation specialists in London. Boasting a highly qualified team, they’ve been assisting clients from different backgrounds for years now — providing them with the best outcome possible, given their particular information. If you’re considering liquidating your company, you can get in touch with them via 0800 612 6197 or by filling out their online contact form here: https://www.bridgenewland.co.uk/voluntary-liquidation.