I think my Scotland based business is in trouble! What is voluntary liquidation? What are my other options?"
There is only one company driving the rescue culture in Scotland. Welcome to Company Rescue!
Liquidation or administration are not the only options!
Have you considered a CVA or Company Voluntary Arrangement?
In Scotland there are few CVAs proposed and this is, in the most part, because there is a culture in the Scottish insolvency world that you should allow the creditors to take control of the debtor company.There is also a belief that the HMRC will not approve a CVA in Scotland - Not so! We have never had a CVA rejected by HMRC in Scotland. Our ethos is that if a company has a viable future (if its current problems can be solved) then you should do your upmost to keep it trading and pay the creditors over time. This method has in most cases given a better return to creditors and saved more jobs than an administration, or, of course, a liquidation.
The standard approach in Scotland seems to be - if a company is struggling, put in a winding up petition and knock the company over or place it into liquidation yourself. Hence, it is even more important in Scotland to recognise the signs of distress in your company and check to see if your company is insolvent. Have a look at our insolvency test pages.
2012 and 2013 Insolvency Statistics - Scotland only:
- 730 Scottish registered companies went into liquidation in 2013. This figure includes; compulsory liquidations and creditors voluntary liquidations. As for administrations and receiverships, the figure was 125.
- As for CVAs, only 14, yes you read that correctly, 14 companies were saved by the CVA tool in 2012 which is a scandalous waste of good businesses. Incidentally the Government also wants more companies to use CVA!
|Financial Year||2012/13||2013/14||Percentage change 2013/14 Q2 on:|
|Quarter||Q2||Q3||Q4||Q1||Q2||2013/14 Q1||2012/13 Q2|
|Creditors' Voluntary Liquidations||71||83||61||80||107||33.8%||50.73%|
|Total Corporate Insolvencies||274||185||143||184||268||45.7%||-2.2%|
|Members' Voluntary Liquidations||46||84||62||75||75||0%||63%|