
It is often the case that taking that first step to discuss the financial concerns that you have about your business can be a difficult one. Avoiding that call isn’t the answer as it can you leave you exposed to the risks of continuing to trade an insolvent company.
Easy Liquidation was established to provide directors a safe place to seek advice about any financial concerns and, should they need to, to take that next step to liquidate a company quickly and cost effectively.
Both our insolvency practitioners are authorised by the Insolvency Practitioners Association and have over 30 years of experience having dealt with hundreds of insolvencies of all sizes and disciplines throughout their careers.
Our practitioners are supported by our experienced and helpful team of insolvency case managers and support staff who are able to support you through the entire process.
We are always happy to begin the process with our no-obligation chat to hopefully provide you with the correct advice, support and confidence you need to take the next step should you need to. If you have any concerns that your business is facing financial difficulty, please don’t bury your head and call us now on 03332027387. We are here to support and advise on the correct course of action for you and the future of your business.
Not if you have acted in the best interests of the company and its creditors. If wrongdoing is found, then there are two elements. Firstly, you may have to contribute towards the liabilities of the company. Secondly, you may end up being disqualified from acting as a company director for up to 15 years. However, we see very few disqualifications.
Unfortunately not, as soon as your company starts the liquidation process, this will terminate all live contracts with customers, employees etc. so you cannot trade. There are other options however, so it is better to speak with an Insolvency expert to see how you can avoid liquidation.
When a company is insolvent it is the responsibility of directors to take action to ensure that the company does not incur any further debts and to protect the interests of creditors. Please see the Schedule of Obligations.
Directors are not usually personally liable for the debts of the company. A limited company is a separate legal entity to its directors and shareholders and, as such, some protection is offered. However, by continuing to incur losses after the company became insolvent, directors might be guilty of wrongful trading. This is an area where our advice can be crucial, so contact us at the earliest moment if you think you may have a problem. Personal Guarantees If, as a director, you have signed personal guarantees (PGs) you could become personally liable for any shortfall the creditor suffers should the company be liquidated. Where a guarantee has been signed by more than one guarantor, each of the guarantors will be ‘jointly and severally’ liable – i.e. all the guarantors are equally liable for the whole debt. Again, seek our guidance as early as possible. Overdrawn Loan Account Directors of insolvent companies often have an overdrawn loan account with their company. If this is the case at the point of liquidation, the liquidator will examine the situation and put forward settlement proposals. If the director is unable to settle their loan, it is possible that the liquidator might consider legal proceedings for repayment, at which point the risk of the director losing their home can arise. Seek advice early!