0800 9700539
Show Menu

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!

keithcropped

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.

2013 and 2014 Insolvency Statistics - Scotland only (figures from AiB):

  • 649 Scottish registered companies went into compulsory liquidation in 2014. 282 went into creditors voluntary liquidations. 
  • As for CVAs, only 13 yes you read that correctly, 13 companies were saved by the CVA tool in 2014. This is a scandalous waste of good businesses. Incidentally the Government also wants more companies to use CVA! (source: UK Insolvency Statistics)

 

2013-14

2014-15

 

Percentage change
2014-15 Q4 on:

 

Q4

Q1

Q2

Q3

Q4

2014-15 Q3

2013-14
Q4

Receiverships

1

0

1

3

2

-33.3%

100.0%

Compulsory Liquidations

181

188

152

135

139

3.0%

-23.2%

Creditors' Voluntary Liquidations

62

62

56

55

56

1.8%

-9.7%

Total Corporate Insolvencies

244

250

209

193

197

2.1%

-19.3%

Members' Voluntary Liquidations

89

118

98

117

147

25.6%

65.2%

Source: AiB
  2013-14 2014-15   Percentage change
2014-15 Q4 on:
  Q4 Q1 Q2 Q3 Q4 2014-15 Q3 2013-14
Q4
Receiverships 1 0 1 3 2 -33.3% 100.0%
Compulsory Liquidations 181 188 152 135 139 3.0% -23.2%
Creditors' Voluntary Liquidations 62 62 56 55 56 1.8% -9.7%
Total Corporate Insolvencies 244 250 209 193 197 2.1% -19.3%
Members' Voluntary Liquidations 89 118 98 117 147 25.6% 65.2%
  2013-14 2014-15   Percentage change
2014-15 Q4 on:
  Q4 Q1 Q2 Q3 Q4 2014-15 Q3 2013-14
Q4
Receiverships 1 0 1 3 2 -33.3% 100.0%
Compulsory Liquidations 181 188 152 135 139 3.0% -23.2%
Creditors' Voluntary Liquidations 62 62 56 55 56 1.8% -9.7%
Total Corporate Insolvencies 244 250 209 193 197 2.1% -19.3%
Members' Voluntary Liquidations 89 118 98 117 147 25.6% 65.2%
  2013-14 2014-15   Percentage change
2014-15 Q4 on:
  Q4 Q1 Q2 Q3 Q4 2014-15 Q3 2013-14
Q4
Receiverships 1 0 1 3 2 -33.3% 100.0%
Compulsory Liquidations 181 188 152 135 139 3.0% -23.2%
Creditors' Voluntary Liquidations 62 62 56 55 56 1.8% -9.7%
Total Corporate Insolvencies 244 250 209 193 197 2.1% -19.3%
Members' Voluntary Liquidations 89 118 98 117 147 25.6% 65.2%
  2013-14 2014-15   Percentage change
2014-15 Q4 on:
  Q4 Q1 Q2 Q3 Q4 2014-15 Q3 2013-14
Q4
Receiverships 1 0 1 3 2 -33.3% 100.0%
Compulsory Liquidations 181 188 152 135 139 3.0% -23.2%
Creditors' Voluntary Liquidations 62 62 56 55 56 1.8% -9.7%
Total Corporate Insolvencies 244 250 209 193 197 2.1% -19.3%
Members' Voluntary Liquidations 89 118 98 117 147 25.6% 65.2%
The browser you are using is Explorer 8 and this site is not compatible with this version. Please upgrade or switch, which is free, for a more secure and better browsing experience.Close