Company Rescue and Liquidations

Company Rescue and Liquidations

There are two ways in which your business can be insolvent.  Firstly, if you're unable to pay your debts as they fall due and secondly, if your liabilities exceed your assets.  In the first instance you are said to be 'cash flow insolvent' and in the latter to be 'balance sheet insolvent.'  Trying to turn financial problems around can be difficult, so why not talk to us today.  There are a number of options open to you and we can help you to find the right one for your business.

If an insolvent company continues to trade, the directors may end up personally liable for any losses made by the company during that period.  If the company later enters formal insolvency the directors may be disqualified from acting as a director for up to 15 years if they traded when they knew or ought to have known that the company was insolvent.

  • Each case is unique, so why not speak to one of our experienced and professional staff who will give you the time you need. We do not operate a call centre and you will speak direct to a member of staff who will handle your case thereafter.
  • We have a qualified Insolvency Practitioner on our staff who is experienced in all matters related to insolvency.
  • We are quick and efficient in starting and completing the work.


Free From Debt can offer various strategies of rescue and recovery on behalf of companies, partnerships and individuals who find the viability of their business is in question.

Facing up to difficulties head on requires significant courage and business acumen, and the temptation to ignore or deny the problem is ever present.  Our advice is to act before judgement is impaired by growing pressure.

Not every situation requires a need to liquidate or seek formal agreements.  By getting help quickly a company or business willing to adapt and/or enter into informal agreements with its creditors can, with the right help, be turned around.

We will discuss and advise which of the following options is best for your business:

Creditors Voluntary Liquidation (CVL's)

A CVL is the most common way used to close an insolvent company, with the directors voluntarily liquidating the company, with the assets or business sold on.  Our insolvency practitioner can act as liquidator, and the procedure can be commenced within as little as a couple of days.

We work with you to set up the liquidation, and then deal with all matters including notices, meetings, company assets, creditors claims, paying out funds to creditors, and other statutory requirements, to close down your company.  Our fees are very competitive, please give us a ring for free advice and a quote.

Company Voluntary Arrangement (CVA's)

This is an alternative to liquidation allowing the company to continue and maximising the return to creditors.  A CVA is a where a company is viable, but has current debts which it cannot pay.  You may need to pay an agreed percentage in full and final settlement or you may simply need time to pay.  A CVA is a legally binding agreement which can be adapted to meet your business needs.  You may, say, be able to offer monthly payments for 36 months, out of which the company’s creditors will be paid part of their debts in full settlement.  Once in place, no further interest accrues on your debts and you are protected from legal action.  The directors remain in control of the company and once the CVA is completed the company continues to trade.

Members Voluntary Liquidation (MVL)

If your company has debts which can be paid in full out of assets within 12 months, we can provide this tax efficient means of closing it for you.  In an MVL all creditors are paid in full and the surplus is paid back to the shareholders.  The main reason why an MVL is used is to obtain the benefit of much lower tax rates on the capital you extract from your company.  Capital returned to shareholders in a liquidation is taxed much more lightly than dividends.

Administration (ADM)

An ADM aims to keep a slightly larger business going while plans are drawn up for a financial restructuring to rescue the company, or the sale of the business or assets to produce the best return for creditors.  Once our insolvency practitioner is appointed as administrator he takes over control of the company from you and is responsible for trading, or not trading, depending on the availability of funds for working capital. He decides how the company and assets are disposed of.  An ADM gives breathing space and can be a way of allowing a timescale to propose a Company Voluntary Arrangement and for the directors to regain control of the company.

Contact us for free advice and /or a quote for our Company Liquidation Service:

Telephone to speak to Mike Reeves or Julie Taylor on either 0800 0112435 or  01969 667222

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