Liquidating your company is something that many company directors want to avoid. However, if you find that your company is insolvent and your company debts are piling up, then liquidation may be the only solution for you. The decision may seem daunting and challenging, but there are some benefits to liquidating your company that can offer you some relief and peace of mind.
Eliminates risk of insolvent trading
Insolvent trading is when a company continues to trade knowing that their company is insolvent. It is illegal and should a company director be found guilty of insolvent trading, they risk civil and criminal penalties.
As the director, it is your responsibility to take appropriate action when your company is unable to pay its debts as they fall due. By appointing a liquidator on a voluntary basis, you are minimising the risk of insolvent trading and any future claim.
Legal action cannot be taken against the company
When you liquidate your company, creditors are unable to hassle or pursue you or take any legal action against your company. This gives you breathing space to take a moment and explore your options without the constant harassment from your creditors or the added stress of potential legal action.
Peace of mind
Gaining a peace of mind is one of the great benefits of liquidation. It lifts the weight off your shoulders and stops creditors and debt collectors from constantly calling you. While it is sad that your company has come to an end, the benefits of liquidating your company means that you have the chance to start over and build a new company, learning from the financial situation of the previous one.
If you are thinking of liquidating your company, you need to consult with an insolvency specialist. At CRS Insolvency Services, our consultants are all highly trained in corporate insolvency assignments. We will provide professional advice to help you make the best decision for your company while avoiding personal liabilities. Contact CRS Insolvency Services on 1800 210 073 for 24/7 free expert advice now.