Start Afresh Liquidation
As the director of an insolvent company, it might seem like you have little option but to close your company and walk away. But if you’re proactive and seek help as soon as you realise your position, we can give you another choice in the form of a Start Afresh Liquidation.
This process means you can leave the stress of coping with creditors and unmanageable debts behind and set yourself up for a better future.
What’s a Start Afresh Liquidation?
While it’s unlawful for your business to continue trading when you know it’s insolvent, a Start Afresh Liquidation allows you to keep your core business by liquidating your current company using a Creditors’ Voluntary Liquidation (CVL) and creating a new one.
What happens in a Start Afresh Liquidation?
A Start Afresh Liquidation is a formal process that needs to be managed by a licensed insolvency practitioner, who will act as the liquidator and take control of your company throughout the liquidation.
In this type of liquidation, you’ll need to go through a standard CVL first. As our client, we’ll make sure the paperwork and admin that comes with the liquidation is dealt with for you.
Our first action is to call a shareholders’ meeting so you can get their approval for the liquidation. Once you have this approval, we’ll send a winding-up resolution to Companies House to tell them of the liquidation. It’s also compulsory to send a notice to The Gazette. You can read about this process in more detail here.
As part of the liquidation we’ll value and sell your business’ assets. This is to raise funds to pay back some of its outstanding debts. In the case of a Start Afresh Liquidation, these assets are sold to the company’s directors so that you can continue your business as before.
What happens after a Start Afresh Liquidation?
After the liquidation, we’ll guide you through the process of starting a new company to house your business. This new company is known as a phoenix company. There are a number of restrictions surrounding the setting up of a phoenix company. We’ll make sure everything is done in the right way and at the right time.
Speak to one of our licensed insolvency practitioners to find out if liquidation could be the right solution for your company.