Liquidating corporation liabilities
The action described above can be regarded as wrongful trading; if a liquidator can prove there was wrongful trading then, you are at much increased personal risk. A classic example of wrongful trading is taking credit from a supplier or taking deposits from customers when you know that it is unlikely that you can pay them back.Voluntary liquidation is the quickest most efficient way to deal with an insolvent company that has no future.The company should also establish a reserve for anticipated additional costs and losses resulting from discontinuance or for incapability to continue its operations.The opening of liquidation during accounting year does not result in ending of the accounting year.These are important processes and will help protect you as individual directors. Call one of our advisors or if you prefer, call our IPs (or insolvency practitioners) now: Just one CALL can solve your problems. We could help you start the liquidation process today.(8.15am till 5.00pm; Out of hours call on 07833 240747, Wayne Harrison (IP) on 07879 555349 or Eric Walls (IP) on 07787 278527) Finally, please remember this: NO BUSINESS is worth losing your health, relationships, marriages or your children over.It really is the end of the company, but the "business" may survive if a phoenix is organised.Liquidation is a powerful way to END creditor pressure and let you get on with your life.
There is little that can be done about that, but you should not delay decisions on liquidation to try and prevent a PG being called in: just think what ALL of the company's debts landing on your shoulders would do.
But, and it is a big but, if you fail to act in time, fail to act reasonably, fail to keep books and records, continue taking credit KNOWING that the company cannot possibly repay it, then you ARE at risk of personal financial loss or worse.
So act now and get help for your company and more importantly start reducing your own risks.
As a director of an insolvent company, you are at risk if you do not act.
This risk RISES the longer you don't act to put the company into liquidation.