How to close a limited company with debt and when it is 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. If your limited company does not have the ability to continue trading, it is important to take prompt action and learn more about out how to close your limited company with debt.

It may be the most suitable option to seek advice on how to close a limited company with debt if the limited company has debts it cannot afford to repay and there is no longer a viable limited company to be saved.

The process of how to close a limited company with debt 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 business 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 they close a limited company. If you are unsure how to close your limited company with debt, 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.

For advice on how to close a limited company with debt, call our experienced team for business debt advice now on 0333 9999 636.

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How we can help you close a limited company with debt

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About the Business Debt Advisor

We are a dedicated team of insolvency specialists, who can help and guide you in how to close a limited company with debt 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 in understanding how to help or close 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 to close your limited company or determine how 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.