What is a Directors Liquidation?

What is a Directors Liquidation?

LIQUIDATION

What is a directors liquidation when it comes to insolvency proceedings of a company which might be insolvent and what the directors can do about it? If a company is insolvent and continues to trade then the directors could be held liable for wrongful trading.

So what remedy do directors have to call a directors liquidation of a company. As a director of a company if you feel or know the company is insolvent and cannot pay its debts then you need to stop trading and seek the advice of a good Insolvency Auditor to help you to cease trading and to help you find optional ways of avoiding any further liabilities in the event of wrongful trading. The insolvency auditor will explain the best course of action needed to do a directors liquidation of your company whilst minimizing your liabilities and exposure from future liabilities as well.

What is the main difference between a directors liquidation and a compulsory liquidation? The directors liquidation is a voluntary liquidation by you and the compulsory liquidation which is a court lead liquidation ordered by a creditor or creditors of the company.

Depending on the amount of debts the company has, you might have a number of options open to you provided you feel the company has a viable business but for the debts. You have the options of a CVA, pre-pack administration, voluntary liquidation, a company administration order or just simply liquidate the company and walk away with minimal liabilities.

If you can gather some information about the company the number of creditors and the amounts outstanding along with what the company is owed from customers (if anything) and what assets the company has. Then simply give me a call on 0800 24 0800 we can probably run through a few options which might be open to you regarding a directors liquidation of your company.

On the other hand if the company has no debts then simply go to companies house and ask them to remove your company from the register, there is a small fee of about £10 to companies house. But this is only if the company has no debts otherwise you will have seek the advice of an insolvency auditor to guide you through the various option open to you for a directors liquidation of your company.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

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How Do I Liquidate My Company?

How Do I Liquidate My Company?

LIQUIDATION

“How do I liquidate my company?” This is one of the most common questions I get asked via email and by phone calls. There are a number of answers to the complicated question, each case is different but what I am going to describe is where the bulk of the answers to the question.

If your company has no creditors, in other words your company does not owe any money to anyone and your company accounts are up to date with companies house then you don’t need an insolvency auditor or practitioner to liquidate your company. You can go to companies house and ask them to remove the company from the register.

If your company has debts that have not been paid or you have ongoing court cases running then you will need the service of an insolvency auditor or practitioner to help you plan the best way forward for your company. These normally involve charges. If on the other hand you don’t have a viable business and loads of debts you can arrange a creditors’ voluntary liquidation to liquidate your company, this rout will also cost you money at a cost of £5,000 or more depending on how complex your case is. But if the company has no means of money to pay for the liquidation then the only other option open is to wait for one or a number of your creditors to apply to the courts to wind the company up which is the compulsory liquidation.

Most people have companies that have debts and they want to close the company down but can’t. The only way you can close a company down if it has debts is via a voluntary liquidation which you or your company has to pay for or allow the creditors to go down the court process for a compulsory liquidation.

Why should you pay for a liquidation rather than let creditors pay for it?

Depending on the number of creditors and the total amount of debts of the company and also who the money is owed to, is it to HMRC or suppliers and so on. This might well cause an investigation in to the affairs and conduct of the directors of the company to see if they acted in a manner fit to hold office as directors in the future and what they did to reduce the liabilities of the company. But if you appoint a practitioner to liquidate the company then you are in the driving seat to a degree which is better than not being in the driving seat if the creditors are running the show and possible pushing the investigation in to the conduct of the directors. If found that you were trading the company under wrongful trading the directors could face criminal charges as well as being banned for being company directors in the future.

Sometimes all it takes is a simple telephone call to make sure you are doing the right thing.

If you need professional help and advice to save your business from the storm, then give me a call on 0800 24 0800 and leave me a message with a brief description of the problems you are facing and the best time to call you back for private and confidential chat to see how we can assist you.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...
Directors Loan Account Reduce / Write off

Directors Loan Account Reduce / Write off

LIQUIDATION

Directors Loan account in an Insolvency / liquidation / winding up petition

In an insolvency situation if the directors are overdrawn by means of a directors loans (in other words the directors owe money to the company) then that money will be demanded by the liquidator appointed for the company.

I am sorry to say I have come across a large number of insolvency practitioners over my life working in the insolvency and business turnaround sector who do not point out to the directors the loan accounts and that they will personally become liable to pay the sums back. All I can put it down to is shear greed to get the client signed up knowing full well there is a directors loan outstanding but say nothing till a few months down the road and then start demanding the money back or further litigation to recover from the directors.

If I have seen this once or twice I would be more than happy to say they made a mistake and overlooked the fact to mention it to the directors that they will want the loan account paid back. But I have seen it with small insolvency practitioners and the bigger practices as well. So sad when greed becomes the key factor.

There are a number of ways that the amount can be reduced well before the liquidation takes place and even during the liquidation also, there are ways to lower the amounts paid back. But what the liquidator will tell you that I am duty bound to collect the loan account in the interest of the creditors. What he is saying is I need that money in my account so I can run my bill up.

Over the years I have helped to reduce and even eliminate the directors loan accounts by way of understanding how the system works and the greed factors for the practitioners as well as other creditors.

If you owe money to your company and you are considering insolvency as an option, do not go to the insolvency practitioner until you know all the facts of the power he has and what works in your favour to reduce or eliminate the loan.

If you need professional help and advice to save you from the directors loan account, then give me a call on 0800 24 0800 and leave me a message with a brief description of the problems you are facing and the best time to call you back for private and confidential chat to see how we can assist you.

My Personal Mission To Help Company Directors and Business Owners Out Of Debts.

moe-nawaz“As a Turnaround Practitioner & Insolvency Auditor, It’s been my personal mission since 1989 to help struggling business owners succeed by eliminating or reducing their company debts. I’ve seen and dealt with every familiar and un-familiar debt situation imaginable and you can rest assured I fully understand your pain and your sleepless nights worry about your company debts. I want you Feel free to give me a call ANYTIME to discuss your company debt situation and how I can best help you to get your life and your business back to normal.”

Call me personally on 0800 24 0800 or filling in the simple form and I will call you back for a private and confidential chat.

Contact me now...