When a company is struggling due to escalating debts owed to creditors such as HMRC and trade suppliers, it can be a hugely distressing time. The reality is that this situation is extremely common; particularly in the UK’s current trading environment where every sector seems to be under pressure.
Unfortunately, creditor pressure won’t just stop unless you take action. Those persistent phone calls, final demand letters, and invoice reminder emails will not go away if you put your head in the sand. And HMRC are becoming increasingly aggressive in pursuing tax arrears and taking directors to court with increased regularity. Which means the best time to take action is now – before the insolvent position of your company worsens, and possibly starts to affect you personally.
Director Redundancy Entitlement – Did you know that as a limited company director, you may be entitled to claim redundancy if your company enters into an insolvent liquidation process? We can point you towards a fully regulated third party who can provide advice on your right to claim director redundancy if this is applicable to your situation. To understand if you are entitled, give a member of our team a call on 0800 063 9262, or email [email protected].
At UK Liquidators, we help hundreds of company directors just like you by putting a stop to creditor pressure and protecting your business from incurring further debt. As the director of an insolvent limited company, you have certain duties and responsibilities which you must adhere to. One of these is to place your creditors’ interests above those of yourself and any other directors/shareholders, meaning you must not do anything to worsen their position or expose them to further losses. This may require you to cease trading immediately in order to prevent the company’s financial position declining further, however, in some cases you may be able to continue to operate – at least in the short-term – if it is deemed that this action could have a material benefit to outstanding creditors. By taking the earliest possible action and contacting us, we can quickly ascertain whether liquidation is the right course of action or if a restructuring and turnaround process is realistically achievable.
If your company is insolvent with no realistic prospect of things improving, liquidation may be the most appropriate next step. As you and your company are separate legal entities you will not be expected to pay your company’s debts should there be insufficient funds within the business to settle these, unless you have provided a personal guarantee.
Take our 60 second test and find out
We also work closely with the UK’s leading redundancy claim specialists; a regulated firm with 30 years’ experience advising directors on personal and staff redundancy. This means that while we assess the viability of your business, they can assess your potential director redundancy claim which, in many cases, can easily cover the cost of the liquidation procedure – essentially providing you with free company liquidation. The average figure awarded to directors following liquidation is £9,000.
Are any of these debts familiar?
If any of these debts strike a chord with you and you’re concerned about these liabilities escalating, liquidation may be the best route forward before matters get worse. Remember, directors are legally obliged to stop trading if, by doing so, they are worsening the position of the company’s creditors.
Our objective is to close your company in the most efficient and effective way possible – we can quickly free you of the stresses and strains which directors carry with them not only at work but also at home. We see the same emotions time and time again – tired of being chased for payment by creditors, tired of letters falling on their doormat, tired from sleepless nights – and generally just worried sick about the future. We can help.
You are not alone in your current circumstances. The first thing to do is either call us on 0800 063 9262 or take our 60 Second Liquidation Test. Our compassionate and highly experienced insolvency advisors do not judge and our process is 100% confidential; in many cases we can start the liquidation proceedings immediately.
We are proud to set the standard across the director advice sector with 80 licensed insolvency practitioners in more than 100 UK offices handling more corporate insolvency appointments than any other firm.
It’s time to take expert advice from UK Liquidators.
One of the main benefits of trading as a limited company is that directors are given the protection afforded by limited liability.
A company cannot remain in administration indefinitely, however, there is not one sole route out of administration.
A company going into administration does not necessarily mean that the business will cease to exist; in fact, rescuing the company as a going concern is often the main objective.
At UK Liquidators, our service is fully partner-led and your case will always be overseen by a fully licensed insolvency practitioner.
If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
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