Is your business is insolvent - should you close it?
There are a number of services to those looking to close their business. For many it will be a straight forward creditors' voluntary liquidation, which may or may not be accompanied by a pre-pack sale of the assets and contracts of that business to another entity, either owned by the existing directors, or to a party introduced by them. If you have a partnership, an adviser can also close that down for you, again, utilizing a liquidation procedure, but in this case, it may be that also an adviser will offer the partners individual voluntary arrangements, which will help manage their own personal and company liabilities. If business is not to close completely and there is a chance that the business can be a saved in whole or in part, a professional can advise on Company or Partnership voluntary arrangements, or administrations. Therefore is you wish to close your business due to economic hardship you should take professional advice as soon as practically possible. If a delay occurs and the company suffers greater losses it is possible that the directors can be held personally liable for the additional losses. It is clear from the latest insolvency statistics that close to 5,000 businesses per quarter will close, in some way or other. Of course many of these will re-start, but the point to take on board is that, closing a business, does not mean that you have failed. Global influences, now affect every facet of individual economies and no-one can be shielded from the effects. The key is to realize, when you need to take advice, and at that point to act decisively. Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company. sthatcher@helpwithdebtuk.com http://www.helpwithdebtuk.com 01162171406 About Author Steve is a qualified solicitor who specialises in debt solutions for businesses and companies alike. From pre-pack administrations to walk through bankruptcys he is always free to talk to. Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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