Outlined below is a brief outline of what Liquidation and Administration terms mean, and how Hawkins Insolvency can help in each situation.
To find out more about any of these options, contact us now for a confidential and no fee chat.
If you are no longer able to pay your debts, or the Director(s) decide that they no longer wish to continue trading, the business may be wound up. There are broadly two scenarios with which we can help.
This means offering initial support and advice and dealing with each of the stakeholders so that you don’t have to.
Briefly, a Liquidation can involve:
Solvent Liquidation: This is when the business has reached the end of its useful life and you choose to wind the business up voluntarily.
Insolvent Liquidation: This is a process which involves realising the company’s assets for the benefit of its creditors. When the business is unable to meet its debt commitments, it becomes insolvent. We take care of all company affairs during this process. The end point is that the company is struck off the register at Companies House.
Liquidation does not necessarily mean the end of the business and there are options to carry the business forward into a new entity under the Insolvency Act 1986 and the Insolvency rules 1986.
If your business is an SME in financial stress, perhaps a temporary cashflow issue for example, but is under threat due to the action of a creditor, Administration is the process which will protect your business.
We’ll help you to work through the difficult financial period, or keep trading until a buyer is found.