If your company has enough resources to pay off your debtors, then a member’s voluntary liquidation (MVL) will help you realise your funds and effectively terminate your relationship with the company. However, if you cannot meet your financial obligations a creditor’s voluntary liquidation (CVL) may be the ideal resolution for your situation. By enacting this measure you will cease trading and all your creditors will be paid off from the company’s remaining assets.
Often a single event will trigger the need for a CVL, such as failure to secure adequate finance, the loss of a major customer or a bad debt. In such instances a third party is nominated as the authority to manage the process of liquidation. McTear Williams & Wood has a considerable experience managing liquidations for a number of companies across a range of industries.
With years of knowledge we have the ability to help you arrive at the best possible outcome from this difficult situation, assisting you in undergoing a complete company liquidation from our Norwich offices.
The most significant benefit of them is that in some cases your debt can be entirely written off. You'll still need to cover the cost of your company's 'Statement of Affairs' and creditors' meeting. However, all subsequent liquidation costs (including debt/outstanding creditor repayments) will be met through the sale of company assets. This generally makes liquidation a cost-effective option for you and your business.
Employees will be able to claim paid redundancy, even if there aren’t enough assets in the business to cover the cost, this payment comes from the government. Directors of the company are also able to claim redundancy pay; the average claim is currently around £9,000.
The initial cost of preparing the Statement of Affairs is usually relatively low and the remaining costs are taken from the sale of the business' assets, so the cost to get it all done is minimal. Not forgetting to mention, you may be able to claim the redundancy pay to help cover any costs.
If you have been declared insolvent it is likely that your company’s value is rapidly depreciating. Through rapid action, it is possible to ascertain the best price whilst still retaining your customers. McTear Williams & Wood is able to provide you with a quick resolution in such circumstances.
Why not find out how a CVL could work for your business? Arrange a free company liquidation advice consultation with McTear Williams & Wood in Norwich and we’ll assist you in understanding the full range of implications. Call us now on 0800 331 7417
If you need to speak with an expert regarding company liquidation in Ipswich please get in contact with us.