My Scottish business is in trouble! What is voluntary liquidation?"
What are the 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 up most 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.
2015 Insolvency Statistics - Scotland only (figures from AiB):
- 582 Scottish registered companies went into compulsory liquidation in 2015. 255 went into creditors voluntary liquidations.
- As for CVAs, only four, yes you read that correctly, four companies were saved by the CVA tool in 2015. This is a scandalous waste of good businesses. Incidentally the Government also wants more companies to use CVA! (source: UK Insolvency Statistics)
Source: UK Gov
Is it possible to liquidate your own company?
Can it be done on the cheap?
How can you wind up a limited company?
Is there such a thing as a pre pack liquidation?
How to start a new company post liquidation
What is a phoenix company?
I am a worried director. What will happen to me after the liquidation?
Frequently asked questions
Starting a new company
Compulsory Winding Up