Company Closure: How do I decide what is the best option for me?
Are you looking to close your company?
While there are a range of alternative solutions to winding down your insolvent business, if the situation you find yourself in is beyond that point of resolution, Creditors Voluntary Liquidation may be your best course of action.
A Creditors Voluntary Liquidation (CVL) can offer a favourable resolution and even result in better monetary returns.
Here are some key benefits to help you make a choice:
- Alleviates the pressure of creditors.
- Allows creditors to recover as much money as possible.
- Ceases legal action.
- Kick start payments due to your staff. These can be claimed via the government.
- Can offer an alternative to continue trading under a different name, legally.
- Allows directors to move on.
- Encourages realisation of reusable assets if any.
Most of all, Peace of Mind!
Making the decision to wind up an insolvent business will instil peace of mind that the business is finally at a close and no longer a worry. You can put an end to the chaser calls from creditors and HMRC, even debt collectors.
A CVL can be seen as more favourable than a creditor or HMRC forcing the company into liquidation. It is never an easy decision to make, but to take control of your business closure is by far the better option for you in the long-term.
A CVL should not be mistaken for a Members Voluntary Liquidation (MVL) which refers to a solvent company that wishes to extract funds in a cost-effective manner before closing down the company completely.
Contact us for a no obligation chat about options available.
