If you find that your Company is no longer viable and are stressed by creditors chasing you for payments. Then Creditors Voluntary Liquidation may be your best option.
Facing endless pressure from creditors, however, you strongly believe your business is worth saving, Voluntary Administration might be able to assist you to achieve that goal.
If the Company is solvent and able to pay off its debts within 12 months, the members (shareholders) can choose Members Voluntary Liquidation to finalise the Company’s affairs.
This is an option that the Company can utilise to reach an agreement and pay off all its Creditors for a lesser amount and over a longer time frame in order to save the Company.
Creditors with a registered security or a Court Order may appoint a Receiver to realise the Company’s assets to pay off their debt when the repayments are not made in accordance with the Loan Agreement.
To pursue an outstanding debt, a Creditor may instruct a solicitor to utilise legal tools and Court proceedings which ultimately cause the Company to be placed into Official Liquidation if the debt is not paid.