Too often Business Financial Issues are the end of both a business and a lifetimes hard work and sometimes even the end of a business owners personal assets!
Liquidators are not your friend!
Often when a Company Director finds him or herself in an impossible financial position they are advised by either their Accountant, their Solicitor or even their friends to contact a Liquidator and place the company into Voluntary Liquidation. The belief is that because you are paying the Liquidator they will look after your best interests and help you to get back on your feet. NOTHING IS FURTHER FROM THE TRUTH.
Although in my experience Liquidators, Administrators and Receivers are usually nice people their responsibility, once they are appointed, is to your Creditors (people you owe money to) and to the courts. They are to collect as much money as possible from the Liquidated company to pay off these creditors. That’s it. If for one minute you feel they will look after your best interests you are sadly mistaken. You do not even factor in their equation.
Once you sign those documents to appoint the Liquidator to your business, that is it! You no longer have any control over the company and the liquidator will do whatever they feel is in the best interests of the Creditor and guess what, in many cases you have just paid for your own business death!
One Director told me…
You were right, I should have listened to your advice, instead I listened to the advice of my accountant and went directly to a Liquidator. I was told that because I am paying for the Liquidator and that this was a Voluntary liquidation, that I would be looked after. WRONG!
I met with the Liquidator and they seemed like very nice professional people and told me they would help me as much as they could to work through my issues. Wow, was I in for a shock. The minute I signed the paperwork the Liquidator asked for the keys and that was it. Everything was taken out of my hands and I was even locked out of my own business. The next day my bank accounts were frozen and what I thought was going to be a helpful situation turned out to be my worst nightmare. I lost everything!
This is a common story. The key is to prepare yourself before hand. Whether the Liquidator is apponted by the courts or you appoint them Voluntarily, there is alot you need to know and do to protect yourself and your rights. Involve us. It is that simple.
One of the most common questions we are asked is “Can I continue to run a business if I have been the Director of a Company that has been Liquidated?”
The answer is yes, but of course there are laws that need to be adhered to and you need to ensure you structure things the right way moving forward. Liquidation does not need to be the end of your business life as so many people think it is. We can help you do this and rebuild a new life after Liquidation. There are options, but in most cases people simply don’t know what they are. We can explain your options and help you achieve your goals.
Be prepared. Liquidators don’t work for you no matter how much you pay them. Your creditors don’t work for you no matter how much of their bill you pay them. Your friends love you but usually have no idea what they are recommending to you. They’ve probably heard that if you want to start again you need to get rid of the company through a Liquidator and it is an easy assumption to make that if you pay a Liquidator they will work for you. Understand, THIS IS NOT THE CASE!