Beware of Company Liquidation
Do not rush into Company Liquidation. You may have overlooked other options and a Company Liquidation can easily become a costly and irreversible mistake.
Understand Your Options
Do not appoint a Company Liquidator or a Voluntary Administrator until you understand your options and the process. Once you appoint a Company Liquidator or place your company into Voluntary Administration, the choices are no longer yours to make. The Liquidator’s job is to work for your creditors and not for you. This may seem unfair when you consider that you are the one who appointed the Liquidator, but this is how Liquidation works.
Often the Director is the only one that receives little or no consideration or sound legal advice on his or her rights, options and potential liabilities. Tax debts for example, may become the Director’s personal liability once a company liquidation has written off the tax. This applies if your ATO reporting is not up to date. Moreover, you may have personal guarantees such as leases etc. Many Company Liquidators will not explain this to you, as they are not interested in the Directors position and it is their duty to recover the best possible outcome for your creditors.
A1 Debt Assistance will explain and prepare you for, and explore the best possible solution with which to make the company liquidation process less painful wherever possible. After our consultation you will understand your rights, options and liabilities as a Company Director and we will determine whether you need to appoint a Liquidator or VA or if a voluntary bankruptcy would be more appropriate.
Company Liquidation does not have to be a bad experience, but if done for the wrong reasons or without your full understanding, the repercussions can be severe. Not every company can afford a Company Liquidation, but if you suspect you are trading insolvent, it is time you ask for help.
Company liquidation should not be taken lightly. It requires careful planning and you will need a professional exit strategy. A1 Debt Assistance will help you to understand the consequences of your actions and we will create an expert strategy and time line for you, thus minimising the personal stress and consequences caused by the Company Liquidation process.
Company Liquidation forms part of a legitimate business exit strategy, but like any strategy it is formed by a multitude of components which must work in harmony to deliver the best possible result. You can make a bad situation worse – get help and speak to A1 Debt Assistance to get an independent appraisal of your position.
At A1 Debt Assistance, we don’t perform Company Liquidations or Voluntary Administrations, but we understand the process and can advise you on the things you must consider before going ahead. We can offer our independent opinion and suggest a strategy to suit. We can co-ordinate and formulate the complete strategy and, most importantly, construct time lines for your organisation prior to you appointing a Liquidator or VA. Every good Company Liquidation strategy must be focussed on providing the maximum creditors return and looking after your employees interests.