When is closing a limited company the most suitable option?

Many limited companies trading in the UK at present may find themselves in an insolvent position, or suffer from short term cash-flow difficulties. It is always important to take prompt action if a limited company has debt and does not have the ability to continue trading as closing your limited company might be the best solution.

Closing a limited company is likely to be the most suitable option if a limited company has debts it cannot afford to repay and there is no longer a viable limited company to be saved.

Closing a limited company is officially called Creditors Voluntary Liquidation (CVL). CVL is also known as ‘insolvent liquidation’ and is the form of liquidation that is most commonly used in the UK.

To start the CVL process, the limited company directors appoint an Insolvency Practitioner who will liquidate all the assets, and then distribute funds back to the creditors. All outstanding company debts after the repayment are written off and the limited company is dissolved at Companies House. This doesn’t include debts personally guaranteed but our business debt advisors can provide specialist advice on this too.

Directors could also be entitled to a redundancy claim of up to £15,750 from the Redundancy Payments Office after closing a limited company. If you are unsure on the process of closing your limited company, then we would urge you to seek advice from our business debt experts. To find the best solution for you, try our quick questionnaire.

All business debt solutions should be carefully considered.

Call our experienced team for business debt advice on closing your limited company now on 0333 9999 636.

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Case Studies

Agriculture
“Bev and the team were marvelous. Wish we had gone to them sooner”
Manufacturing
“We bought the business back with the help of the TBDA team”
Online Retailer
“Thanks to Bev and her team for negotiating a fantastic price for the business”
Advice
“Almost three years after commencement of the liquidation, Anthony received a Statutory Demand requesting payment of the balance in full.”
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How we can help

    • Confidential advice for limited company owners
    • Dedicated team with over 50 years experience
    • Free consultation
    • Fixed fees
    • Reduced stress arising from financial pressures



About the Business Debt Advisor

We are a dedicated team of insolvency specialists, who can help you with the process of closing a limited company or resolve any financial difficulty your limited company may face. Our team has provided help to limited companies operating across all sectors, and has a wealth of experience which makes us best placed to help a struggling limited company.

At The Business Debt Advisor, we will consider all of the options available to your limited company, and work closely with you to ensure that the best outcome is achieved, in the most cost-effective way – whether it is by closing your limited company or finding a way to rescue the limited company.

This ensures that you are provided with complete advice which enables you to make clear decisions. Our team is proud to have helped many limited companies rebuild and work hard to make the process as fast, simple and stress free as possible.

Our specialist team has over 40 years combined experience of helping distressed limited companies. We are fully authorised and regulated by the Insolvency Practitioners Association (IPA) and Financial Conduct Authority (FCA) which means we are truly able to provide our clients with complete advice. Our caring approach is what sets us apart from the rest.

For a free consultation call us on 0333 9999 636 or request a callback. Registered company number 06248441. Authorised and regulated by the Financial Conduct Authority (659920).

If you've read through our section and feel like you would like some further information, please call us on our 0333 9999 636 and one of our advisors will give you the right help and advice based on your individual circumstance.