If you want to start a new business you can get on with it and get back to asking investors to work towards a new successful business rather than paying off debt.3.Employees The cost of redundancies and restructuring do not apply as the company does not have the money to pay it.If the investigation shows any abnormalities, further enquiries will be made.This could result in directors being disqualified or held liable for the company debt.2.
In a compulsory liquidation, the liquidator is appointed by the courts or the creditors.
Creditors are well within their rights to take legal action against an individual if personal guarantees have been made, written or verbal.3. The director’s overdraft must be repaid and the directors are personally responsible for current account debts, payable to the company. All and I mean ALL of the company’s assets will be sold.
The way to look at it is that the overdraft is an outstanding amount owed to the company and this money needs to be recovered as all of the company’s outstanding invoices need to be paid.4. The liquidators need to raise as much cash from anything they can to pay their fees as well as pay back as much as possible to the company’s creditors.
In most cases, some creditors will have to accept a loss and they won’t be happy but it will be a weight off your mind.2.
Take stock Although the liquidation process is difficult, you will not be undertaking it – the liquidators will, so this gives you time to breathe and take stock.