Our support and services for companies who are considering closing
Compulsory vs Voluntary Liquidation
The difference is, who has control over the future of your business and its assets?
If you voluntarily liquidate the business, you to a certain degree remain in control. The benefits; you can instruct your insolvency practitioner; you have the opportunity to sell or buy back the assets and you can deliver the message to your staff.
If your business is compulsorily liquidated, the actioning creditor will apply to the court for a statutory demand, with an aim to wind-up your business; resulting in an Official Receiver being appointed by the court.
An insolvency practitioner will be required if the business is unable to pay the debt or come to an agreement. The Insolvency practitioner will then be tasked with selling the business assets and notifying staff and creditors of the company closure.
To summarise, if your business is insolvent it is recommended that you voluntarily liquidate over your business being compulsory liquidated.
Company Money Worries are here to guide and support your business and whether a Voluntary Liquidation is right for your business.
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