Your company is formally closed, the balance of debts written off, and the directors generally walk away.
If you have any personal guarantees, they will come into force, most of the time they are ready to do a deal, all they want is their money back.
It is really designed for you if: The assets (if any) are sold in order to pay something back to the creditors of the company.
Any outstanding debtors are called in again for the benefit of the creditors.
This tends to be a whole lot better than dealing with the Official Receiver.
As the Director of a limited company, it is a relief to know that you are able to put your company into Voluntary Liquidation and make a fresh start, putting the past well and truly behind you.
With the right Liquidator, support and advice, Voluntary Insolvency can be an ideal way to close a company that has just got too much debt to carry on effectively.
Your creditors will receive a payment (a dividend) based on what they are owed, in a lot of cases this amounts to not a lot if anything at all. Getting the ball rolling – there is a simple 3 step plan to get the ball rolling.
If you want to Liquidate your company, you can find a guide here.
The Liquidation process offers a way out of the problem.
You may well feel that your business dreams are at an end.