This is not a time where quicker is better
What does this mean for you? A few things really:
1. The Liquidation will affect your credit rating. On your personal credit file, it will be noted that you are the Director of a Company in Liquidation. What this means is that while the Company’s Liquidation is still active with the Liquidator, you may not be able to borrow money or obtain finance, because the financier is nervous that you may be sued by the Liquidator for insolvent trading or a preference payment.
So, it would be in your best interest to make sure that you have personally obtained all finance that you are going to need for the next 2 years before placing your Company into Liquidation.
2. Make sure you understand that a Liquidation takes a long time to complete. It won’t happen overnight, and it won’t happen in 6 months. Our advice is to let the Liquidator come to you with their requests and not to bother the Liquidator with constant requests of when will the Liquidation be completed. These types of requests will not end favorably for you. The Liquidator should notify you in writing when the Liquidation of your company has been completed.
If the Liquidation is taking a long time, it means that the Liquidator has found a claim that they are pursuing through court. The claim may be against the Director(s) or creditors of the Company. If you have received a demand from the Liquidator, contact us to discuss how we may help you deal with such demand.
3. Understand that a Liquidation should be carefully thought through before commencing. Look at the Company’s assets that you are still using. Are you driving a car that you purchased in the Company’s name? (look at the bill of sale for this not the registration paper). If so you need to sell it for the market value to yourself personally and pay the proper consideration to the Company for the vehicle, remember you will also need to pay out the finance on the motor vehicle or refinance the remainder of the contract into your personal name with any other proceeds for the sale being paid to the Company.