Solvent & Insolvent Liquidation
Listed below are the three types of liquidation procedures we offer advice on to Directors:
We can explain the pros and cons of each procedure and which is best suited to you in the current circumstances.
Creditors Voluntary Liquidation in Plymouth and Cornwall
A Creditors Voluntary Liquidation is a procedure used to formally wind up an insolvent company. A licensed Insolvency Practitioner is needed for this process and this is where we come in as all of our Insolvency Practitioners are fully licensed. We have all you need to hold your hands throughout this process and help you to put your company into Liquidation and ensure that you are complying with your statutory duties as Director/s.
Compulsory Liquidation in Plymouth and Cornwall
This is a Court driven process used to formally wind up an insolvent company. If a winding up petition is lodged to start a Compulsory Liquidation by one of your creditors you should seek advice from us urgently as it could mean the beginning of the end for the company.
Members Voluntary Liquidation in Plymouth and Cornwall
This procedure is available for solvent companies as an alternative to an ordinary dissolution of a company.
The benefits of a Members Voluntary Liquidation as opposed to an ordinary dissolution of the company are that the Directors/Shareholders can often benefit by paying less tax on distributions of the assets as they can be entitled to claim Entrepreneur’s Relief. In addition, where the distributions are to be significant, some people prefer the certainty of a formal MVL to avoid the potential risk of an ordinary dissolution being subsequently unraveled. Changes to the law mean that in a lot of cases an MVL is the only option available to the Directors/Shareholders.
When to consult us
The sooner we are consulted the sooner we are able to assist you in finding a way through the business difficulties you are facing. The later it is left, the fewer the options will be. The best time to consult is as soon as any financial difficulties become apparent.
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