With the current economic climate that doesn’t look as though it’s going to let up any time soon there has been an increasing number of people that are opting to go down the route of bankruptcy. However, it’s not just individuals that are affected by the financial downturn. Rather, there is still a large number of companies that are also facing financial difficulty and due to this they have no option but to liquid the company.
Why should you choose liquidation?
Liquidation is an option for companies that in effect are deemed to be insolvent. In short this is deemed under a parliamentary act which states that when the assets of the company are in actual fact less than what the company has in terms of liabilities. It can also refer to a company which is consistently unable to pay its bills on time to the extent that there is a severe amount of debt being incurred due to this. At this stage, it may be an option to go down the route of liquidation, although what is this process?
What is liquidation?
In effect, this means that the limited company undergoes a legal process whereby it ceases trading and therefore is no longer regarded as a company, nor is it able to operate as one. This is not an immediate process. Instead, liquidators take over the day to day running of the business in an attempt to settle business matters which would involve collecting the funds that is owed to it as well as carrying out any remaining work which has been paid for either in part or full. Upon completion of these roles by the liquidators the company is removed from the active register at the Company House where it was originally registered and thus it no longer exists.
Of course, the challenges involved in the liquidation and the size of the company will be reflected on how long it takes to dismantle it. Having said that, presuming that everything goes smoothly i.e. there are no unforeseen circumstances then the task can be completed usually within 8 months. Thankfully, due to the fact that the company is a limited one, there is no personal liability involved with regards to yourself and everything will be dealt with by the liquidators on your behalf. The only instance where this wouldn’t be true would be in situations whereby you have maybe decided to take out a loan in your own name and not in the company’s name. In this situation, liquidation would not be able to help you with this loan, regardless of is the loan was intended to be used for the business. In this case, it would be your own responsibility to pay this back.
Which company should you use?
With regards to company liquidation there are many companies that can assist in this process. However, as mentioned above, the process of liquidation itself isn’t an open and shut case and it does require an intricate amount of work to make sure that a satisfactory resolution is achieved.
Due to this, it’s best to go with a company that is transparent and gives you all the facts that you need to know about the process as well as the costs which are specific to your company. One such company that can do this is Company Liquid Services. They provide you with an impartial and free advice online which can assist you in deciding if liquation is the right process for you and how much you can expect to pay for this kind of service. The company themselves have many years of experience in dealing with liquation, and they treat every company on a case by case basis rather than using a one sizes fits all model which would be of no benefit to the various kinds of companies that are involved in liquidation.
Moreover, when it comes to Company Liquidation Services, you can start the ball rolling on the liquation process online meaning that no matter what time of the day it is you can start the process of winding down your company so that you and the people involved can move on from this venture.