No it is not true! This just shows there is a lot of nonsense spoken about liquidations, wrongful trading and acting properly. Many people are very worried about liquidating their company as they think it might affect them personally.
So how will it affect you?
Having a limited liability company means that the directors have little risk (or limited liability) if the company fails, as long as they have acted properly.
See Liquidation FAQ's page for more questions and answers on this subject, but remember the following. If you have acted properly and reasonably then the company's failure should have limited effects on you personally.
But, if you have signed personal guarantees or indemnities to lenders, then the liquidation could lead to them being called in if the bank cannot get its money back from the company.
One great piece of FREE advice - always make sure that ALL tax returns, VAT returns and annual returns have been completed and sent in and that other "compliance" issues are dealt with wherever possible. These are important processes and will help protect you as individual directors. It shows that you have at least been acting properly.
This is clearly a general guide so, if you have any worries at all please just call us and we will talk you through the situation free and with expert guidance. Call now on 01289 309431.
Finally, please remember this. NO BUSINESS is worth losing your health, relationships, marriages or your children. Act properly, take advice, get the problem sorted and then get on with your life. In a little while the stress will go and you can focus on other things that are more important.
Some of the people here at KSA have been through this unpleasant experience, so we know what you are going through.
Still got questions? then call us and ask them!