Company strike off has been suspended – what now?

• Your first option is to simply submit the strike off application again and hope that your creditor does not oppose it this time around. You may be lucky and your application may slip through the net, however, the chances are that you are now on your creditor’s radar and they will be keeping a close eye on your actions and will be ready to step in with an objection. Furthermore, you should be aware that your company can be restored to the register even after it has been struck off should a creditor be able to give a valid reason for this. 
• If your application has been suspended due to a small outstanding debt, you could pay off your creditor and once this has been settled simply submit the strike off application again. As your company now does not owe anything, there is no reason for your application to be rejected. This route is obviously dependant on the size of your company’s debt and your ability to clear this balance. You should be aware of making a preference payment and ensure all creditors are treated equally once you make the decision to shut the business down.
  
  

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• Extreme caution must be taken if your company owes multiple amounts to a variety of companies. Unless you have the funds the clear the entirety of your debts, you should steer well clear of making any payments to creditors prior to striking off your company. For example, if you have a number of creditors but only one of these has objected to your company’s strike off, you cannot just pay this one debt off and then proceed to dissolve your company. This type of action is known as making a preference payment and is likely to be viewed as wrongful trading.
  
  
• Your final option is to enter into a formal liquidation procedure to bring about the end of your company. This will typically take the form of a Creditors’ Voluntary Liquidation (CVL). During a CVL an insolvency practitioner will be appointed to manage the affairs of the company and close it down. Any assets in the company will be liquidated and distributed to outstanding creditors on a proportional basis. Any debts left outstanding will be written off as part of the process.