April is Stress Awareness Month and if you’re going through a company liquidation or on the brink of insolvency proceedings, it’s likely to be a stressful time.
However, you are not alone – in 2018, there were over 16,000 company insolvencies in the UK, up 10% over the previous year.
Of these, nearly 70% were creditors voluntary liquidations (CVLs), nearly 20% were compulsory liquidations, nearly 10% were company administrations and the rest were company voluntary arrangements (2.2%) with a single case of receivership.
While that might come as cold comfort when you are facing financial difficulties of your own, it’s an important reminder that corporate insolvency advice is available and many thousands of businesses make use of the different company insolvency processes each year.
Why seek fast CVL advice?
If you’re reluctant to recognise the severity of your financial situation, it can be tempting to wait for your creditors (or in many cases, HMRC) to petition for compulsory liquidation.
However, it can be much less stressful to seek fast CVL advice as early as possible, as this gives you the best chance of turning around the situation, or at least retaining some degree of control over it.
CVLs are by far the most common form of company liquidation, as they allow directors to discharge their duties even when closing down a company that is no longer profitable.
In contrast, if you wait until a creditor petitions for compulsory liquidation, you will still typically get an insolvency practitioner appointed to liquidate your company’s assets, but you may also face further investigations into your conduct afterwards.
Stress-free insolvency advice
While we can’t guarantee the process as a whole will be completely stress-free, we always aim to provide stress-free insolvency advice that takes your unique circumstances fully into account.
That means we can help you to understand the different forms of company insolvency and corporate liquidation, including CVLs, compulsory liquidations and the alternatives like CVAs.
Gaining a better understanding of your position and the options open to you is the first step towards dealing with the stress of corporate insolvency, while discharging your duties as a company director to the best of your abilities too.
Contact us today if you are considering company insolvency. We specialise in insolvency advice and will help to guide you through the proceedings in a stress minimising way.