Sunday, October 7, 2012
Who Should I See If My Company Goes Bust?
If you have a limited company and you simply want to close it down correctly, then get on with your daily life maybe doing something else completely, the liquidation process will be right for you. It is cheap and quick and entirely pain-free.
On the other hand, if you wish to carry on trading yet realise that this is simply not viable in the current limited company due to the debt it carries, you may be able to put in place a pre pack liquidation or administration. Speed is vital; the people you get to help you must be experienced enough to know how to effectively implement things in their proper sequence so that it doesn't impinge on the other things that must happen at the same time. This will give you the best chance of continuing to trade with current customers, with very little disruption as you possibly can.
Ideally you will want to continue trading throughout this transition period so that you are able to draw an income from your business (and so that every other shareholders may still draw an income as well, whether it is through a dividend or other means) so that the financial continuity within your personal life is not disturbed. The continuity of the business at the moment will also be of great benefit to your customers and your other key workers and any other staff. There's no need to let anyone down, and nobody will think bad of you by implementing these necessary changes.
If you have a business that can continue as it is, as long as it has a bit of breathing space, this can be arranged that as well. The business can be guarded with an administration order, while the right measures are put in place to help the business emerge fit and strong. The debt will be left behind, whilst helping the new company emerge with a great chance of a sustainable and successful future.
So if your business is going bust, do not despair. The help is there to advise you on how you can emerge from this, debt free and with a business still intact.
For more information check out Finance7