If your company has debts that it can’t pay it’s become insolvent and it’s important you seek advice as soon as you reach this point.
You will appoint an insolvency practitioner, the business will be liquidated and the Bounce Back Loan and any other unsecured debts will disappear once the liquidation is completed.
Before you do anything though it’s critical that you understand if there are any personal implications to you if you close the company via a liquidation.
- Did you take more money than you were entitled to?
- Have you spent the Bounce Back Loan on personal things?
- Do you understand that if your director’s loan account is overdrawn when you liquidate, you will be asked to pay it all back?
I’m going to host a free webinar next Thursday at 12 to help you understand how to close a company and what to check before you do.
Registration details are in the comments section below.
All the best,