www.company-debt.co.uk

[MarcusB]

I am no longer able to sustain my business and want to close it. Can I close it myself or do I have to wait for a creditor to do this for me?

[Graham Wilson]

Hello MarcusB

You definitely can close the business yourself and in fact it is often best to do so. I assume that your business is a limited company. If so, you will need to use the voluntary liquidation process. You would use members voluntary liquidation if the business is solvent or creditors voluntary liquidation if the business is insolvent (owes money that it is unable to pay). Is your company insolvent or insolvent?

[MarcusB]

Hi,

Unfortunately the business is not able to pay its debts and I do not see any way that this situation is going to get any better. What would the liquidation process cost if I initiate it myself?

[Derek Cooper]

Hello MarcusB

As Graham said, it is never a good idea to leave your company to be wound up by a creditor. If this were to happen, you would have no control over the appointment of the liquidator and could risk a harsher investigation into wrongful trading.

It would be far better for you to initiate a creditors voluntary liquidation. There would still be an investigation to your conduct as a director by the liquidator, but often you are in far more control of who acts in this capacity.

The cost of implementing a CVA is normally £4000 +VAT which could be paid for from company funds if available.