Liquidation Case Studies

Liquidation Case Studies

KSA Group has done hundreds of liquidations over the years.  See our case studies below.

We always say to potential clients that if you have not been fraudulent, or extremely negligent, then there is not too much to worry about if you liquidate a limited company.  The whole point of limited liability is it protects directors from personal losses if the company loses money or becomes insolvent.  The “veil of incorporation” is lifted if directors have been guilty of serious wrong doing.  This is generally due to the following

• Taking out excessive money when they knew the company was insolvent
• Taking deposits from customers when they knew there was no prospect of the work being done
• Deliberately making creditors position worse.
• Theft and Fraud from the company.

You may be disqualified from being a director for the above actions.

If you have personally guaranteed the company’s debts then, yes you will be personally liable.  However even if you are held personally liable and cannot afford the payments you might be able to go into an Individual Voluntary Arrangement (IVA)

Can I start another company after liquidation?

Yes, you can. However, if you have been the director of a liquidated company, and you set up a new company it cannot have the same or a similar name to the old company.  This is to reduce any confusion for creditors of the old company.

This is called passing off (under section 216 Insolvency Act 1986). It can lead to criminal action against the director, or being held liable for all of the debts of the new company if it goes into liquidation.   Also bear in mind that if you owed HMRC substantial sums in the old company then they are likely to ask for a VAT deposit.

If you want advice on your particular issue then call us on 08009700539 Out of hours you can call Keith Steven on 07833 240747.

Why not read our extensive downloadable guide to Liquidation