Jon manages high‑risk insolvency cases and delivers structured, compliant outcomes.
For many directors, the Bounce Back Loan is the single biggest worry when their company can’t continue. A Bounce Back Loan is treated as a standard unsecured business debt, and it is written off with formal insolvency. But the real story is what this means for you — your personal position, your credit file, and your future.
A winding‑up petition is a creditor’s legal request to the court to force a company into compulsory liquidation. Directors must treat a petition as urgent: if the court issues a winding‑up order, a liquidator takes control and the company is closed.
The most affordable way to shut down a company is through voluntary dissolution, also known as a strike-off. This director-led process involves a small fee and can be completed online using Form DS01 via Companies House.
In 2022, UK government expanded the Insolvency Service’s powers to investigate directors of dissolved companies. These reforms aimed to combat fraud, particularly misuse of Covid‑19 support loans.
Entering a Creditors’ Voluntary Liquidation (CVL) follows a structured process designed to protect creditors and ensure directors meet their legal duties. The journey typically unfolds in several stages, from the initial board decision through to final dissolution.
Liquidation costs can be covered by company assets, director redundancy claims, or personal funds. Directors should understand their options before choosing voluntary or compulsory liquidation.
It can sometimes not be clear and obvious whether a company is insolvent or not. Seemingly insignificant issues can cause business failure if they happen in conjunction with other similar problems.
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