I get this question asked a lot – they are 2 different processes that can be used when closing a company down.

Liquidation is handled by a licensed insolvency practitioner and is used when a company has liabilities and assets.

Striking off a company is where a company gets struck off the register at companies house because it’s no longer trading and has been inactive for some time.

Remember striking off a company is only an option when all business debts are paid, or there are no debts and you no longer have any need for the company

There is a new bill being read for the second time today in the House Of Commons and it’s expected to be law before the end of summer.

This new bill will give the insolvency service new powers to investigate and disqualify directors of dissolved companies.

The banks are now starting to reinstate companies that have been dissolved after taking a Bounce Back Loan or a CBILS as it’s unlikely the government will pay out if a lender has let a company be struck off.

If you need to close your company with a Bounce Back Loan the correct method is to appoint a licensed insolvency practitioner and close the company via a creditors voluntary liquidation. This will bring a formal end to the business and all unsecured debts are legally written off.

If you are being advised to strike the company off PLEASE STOP NOW and take some professional advice.

Don’t spend another night tossing and turning – get some confidential, no-obligation advice today.

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