Updated: 28th April 2021
As a company director, obtaining free liquidation advice is important whether your business is solvent or insolvent. Company liquidation is a formal procedure that must be carried out by a licensed insolvency practitioner (IP).
Members’ Voluntary Liquidation, or MVL, is the process used to close down solvent companies, and is commonly entered into when a director wishes to retire or the business has simply run its course.
If the company is insolvent, a different type of liquidation must be carried out, and this is called Creditors’ Voluntary Liquidation (CVL). It helps you comply with the uncompromising laws of insolvency that exist in the UK, by minimising creditor losses.
If you don’t fulfil your legal obligations as a director by prioritising creditor interests you could face serious repercussions, which is why obtaining liquidation advice for free is so important.
Director disqualification and personal liability for company debts are two potential outcomes if you unwittingly take a wrong step when your company is insolvent. So how can you secure much-needed guidance on liquidation as a company director?
There are various places to go for free liquidation advice, but it’s important to ensure any advice you obtain is from professional and reliable sources.
Licensed insolvency practitioners typically provide initial liquidation advice free-of-charge for company directors and business owners. This enables important decisions to be made with greater confidence and understanding.
Seeking advice from ‘licensed’ insolvency professionals is key, however, rather than non-licensed insolvency ‘experts’ who may offer the wrong advice, or simply take a fee for referring you to a licensed IP.
A number of debt charities also provide liquidation advice free-of-charge for company directors. These include Business Debtline, which is run by national charity, the Money Advice Trust.
Real Business Rescue are insolvency and company liquidation specialists. We offer free, same-day consultations, providing trustworthy guidance on the financial status of your business and any suitable options going forward.
Our partner-led team provides free advice on liquidation, and has extensive experience of helping company directors to voluntarily liquidate, whether their company is solvent or insolvent.
We understand that the prospect of company liquidation can be daunting for directors when their business is experiencing severe financial difficulty and relentless creditor pressure.
Obtaining free professional advice can provide a clearer path through what is often a complex situation – one that can ultimately affect your future and personal financial position if misconduct is found.
So what type of company liquidation advice might you receive during a free consultation?
If your business has entered insolvency, you’ll find out whether any rescue procedures are available. If not, and liquidation is unavoidable, we’ll guide you on the best way to proceed and advise on your legal obligations as a company director.
On the other hand, you may be considering liquidation for your solvent business. In this case it’s important to not only understand the liquidation process, but also the elements that can potentially disrupt a seemingly straightforward liquidation case.
These might include the existence of contingent liabilities, for example. If these are not included in an assessment of the company’s financial position, they can easily tip a business that’s assumed to be solvent into insolvency.
Real Business Rescue operates an extensive network of offices throughout the country so you’re never far away from free liquidation advice, or indeed professional support for any business matter.
Contact one of our partner-led team for further information – we’ll explain more about the initial consultation, and the type of advice we can offer you as a company director. We’ll take the time to understand the situation your company is facing, so an accurate quotation can be provided along with a plan of action.
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