Liquidation refers to the act of winding up a company’s affairs whereby, in most cases, trading ceases. However, there are different types of liquidation: involuntary liquidation and voluntary liquidation.
Involuntary liquidation means that the company has been issued with a court order to be wound up, while voluntary liquidation is when a company director willingly applies for it to be wound up. While some people may prefer to wait until they are forced to close down their business, there are benefits to voluntary liquidation which can make it the preferred business solution for some.
- You can choose the liquidator
A major benefit of voluntary liquidation is that you can choose who will be appointed as the Liquidator of your company as opposed to an involuntary liquidation in which the court will appoint one on your behalf or the creditor apply to the court will nominate a liquidator of their choosing.
This means that you can take the time to do your research and choose a liquidator who you feel most comfortable being in charge of the liquidation of your company. This can make a big difference to your experience in this process.
- You are protected from personal liabilities
Choosing to voluntarily liquidate your company means that you recognise that your business is insolvent and that you have taken the appropriate steps in ensuring that the company’s best interests are met. Voluntary liquidation can help prevent you from being further responsible for debts which you may become personally liable to pay if you don’t cease to trade.
- You get a fresh start
We understand that it can be a tremendously difficult decision to voluntarily liquidate your company. However, voluntary liquidation can bring you a peace of mind. It can help you to see the end of a long and stressful time, and give you the space you need to begin the next chapter of your life.
CRS Insolvency Services are highly experienced in assisting insolvent companies to explore business debt options such as voluntary liquidation or voluntary administration . If you are concerned about your business’s solvency, then please speak to one of our friendly and professional debt consultants for 24/7 free expert advice on 1800 210 073.