Directors can usually start a new company after liquidation, but must carefully follow rules on company names, asset transfers, personal guarantees and conduct. Professional advice from a licensed Insolvency Practitioner is strongly recommended before acting.

An MVL offers solvent businesses a formal, tax-efficient route to closure, handled by a licensed Insolvency Practitioner. It protects against dormancy risks, ensures creditors are paid and distributes remaining funds to shareholders cleanly.

A CVL offers insolvent businesses a structured, voluntary closure route, relieving directors of creditor pressure, clarifying duties, protecting employees and ensuring assets are dealt with properly under licensed insolvency practitioner guidance.

A step-by-step guide to the CVL process with Parker Walsh, covering consultation, onboarding, notices, meetings and liquidation, with most straightforward cases concluding within six to nine months.

After liquidation, directors face a five-year ban on reusing the company name. Breaches risk criminal charges and personal liability, though recognised exceptions exist, including purchasing the business from the liquidator with proper notices.

An overdrawn director's loan account is a debt owed to the company, not automatically written off in liquidation. Parker Walsh takes a transparent, practical approach to resolving balances, focusing on realistic repayment rather than pressure.

Liquidators must investigate director conduct during liquidation, reviewing financial decisions and transactions. While standard procedure, misconduct can lead to personal liability or disqualification. Early professional advice helps directors understand responsibilities and minimise risks.

Administration aims to rescue or restructure a business, while liquidation closes it down. Choosing the right option depends on viability, making early professional advice essential for directors facing financial difficulty.