How to Liquidatewithout the hassle

Why is it important?

Last year in the UK more

than 1,500 Directors were prosecuted.

Why is it important?

That's almost 1 every working business hour.

By following some simple rules you don't need to be one of them.

Why is it important?

In our experience these mistakes are made In the last weeks before Liquidation

Most can be avoided.

Why is it important

As a Director of an Insolvent company

(And you are Insolvent if you can't pay your bills on time)

Why is it important

Your job description has changed

You are now there to look after the interests of the creditors of the company...

Not the shareholders...

What you will learn

● Dealing with people you owe money to● Taking more debt● Handling assets

Please remember these are general guidelines and for a plan tailored to your business you need a proper Voluntary Liquidation consultation at Liquidation Services (did I mention it's free)

Disclaimer

Dealing with Creditors

Creditors are who you owe money to. It is important to be careful about how you deal with

them just before you Liquidate.

Dealing with Creditors

As a general rule – pay no one...

...not even the tax man...

...that would be showing preference to one creditor over others..

Dealing with Creditors

If you have to pay anyone it should be with a really good reason...

If you do you should pay everyone proportionate to what they are owed

Taking on more debt

This causes Directors more problems than anything else...

Taking on more debt

If you can't pay what you already owe.

How are you going to pay the new debt?

You can end up being made personally liable for some of the debt in this situation.

Taking on more debt

If you do need more stock, maybe to complete an outstanding contract

It should be paid for in advance

Taking on more debt

But you should only ever pay out money if it will result in an improvement in the companies financial position.

Handling your assets

If your business is lucky enough to have assets then these should be sold to help creditors.

Handling Assets

There are different types of assets.

● Your stock (floating).

● There are assets you use to help you run the business (fixed).

Handling Assets

As a rough guide...

If you sell apples

You can continue to sell the apples

But not the apple cart

Handling Assets

You can sell fixed assets before you instruct...

...even to another company that you're involved in.

This should be done at a 'market' price.

Handling Assets

Which usually means getting them valued to see what they are worth.

Any proceeds from the sale of assets should be kept safe for the creditors in Liquidation.

Summary

● If you sell assets make sure it's for a fair price and keep the money safe

● Don't take on any more debt

If in doubt...

● If you must pay creditors do it proportionate to their debt and pay all creditors

Get Advice

Our advice is always

● Professional

● Free

● Strictly confidential

Visit Liquidation Services