Neuffer Consulting Group

Liquidation of your company will not affect your personal wealth or assets that you and your family own. Unless you gave any form of security or personal guarantees.

Where a company cannot meet its debts as and when they fall due it is regarded as insolvent. The directors need to take action. It may be possible to re-finance the company or put forward an informal or formal arrangement to its creditors. If, however, none of these are feasible, then the directors must take steps to cease trading and stop incurring any further credit. All directors have an obligation to make sure that the position does not deteriorate further. Once a Company is insolvent, the directors’ primary duty is to protect the interest of creditors – not the directors or shareholders.

It is a common misconception that company directors have no right to redundancy. 

Just like any other employee, a company director of an insolvent company, may be eligible to claim for the full cost of a liquidation procedure.

Our dedicated strategic partners can quickly asses a director’s entitlement to redundancy and other statutory payments to maximise a redundancy pay-out.

Another option is, depending on the type of insolvency, the costs of the procedure could be borne through the sale of the company assets or the recovery of outstanding debtors. 

However, if the assets do not cover the costs of the insolvency the directors will need to pay the fees.

You can start a new company up before or after you liquidate your current company and you can remain a director unless you are formally disqualified from being a director.

Liquidations are mostly only advertised in the London Gazette. When was the last time you looked in the London Gazette?

With Liquidation or an Administration order this will not affect your personal credit in any way. Although with a personal bankruptcy your information will stay on your credit report for six years, assuming you begin rebuilding your credit immediately and keep your credit clean, you can usually obtain a mortgage within eighteen to twenty-four months after.

Yes. If you, as a Director, have acted outside your powers or contrary to the Insolvency Act or the Companies Act, you may become personally liable for some element of the company’s debts.

Where a company cannot meet its debts as and when they fall due it is regarded as insolvent. The directors need to take action. It may be possible to re-finance the company or put forward an informal or formal arrangement to its creditors. If, however, none of these are feasible, then the directors must take steps to cease trading and stop incurring any further credit. All directors have an obligation to make sure that the position does not deteriorate further. Once a Company is insolvent, the directors’ primary duty is to protect the interest of creditors – not the directors or shareholders.

Directors are entitled to claim these sums, if they were employees of the company. In some instances, where a director is also the controlling shareholder, his claims may be challenged by the Redundancy Payments Office. 

Our dedicated strategic partners can quickly asses a director’s entitlement to redundancy and other statutory payments to maximise a redundancy pay-out.

Once appointed the Liquidator will send the necessary forms to all employees concerned. When these have been returned to the Liquidator’s office, they will be forwarded on to the Redundancy Payments Office. Claims usually take about six to eight weeks to be processed. 

Alternatively, our dedicated strategic partners can quickly asses a directors and all employees to entitlement to redundancy and other statutory payments to maximise a redundancy pay-out prior to appointment and upon appointment submit the claims for an even quicker payout.