In many situations, a Business Recovery Plan is a very realistic course of action to take.
A well constructed business recovery plan allows a company to improve its cash flow situation and trade out of insolvency. Liquidation can clear all your company's outstanding debts and allow you to move on.
This is by far the most common choice for insolvent companies and is relatively inexpensive.
If a company is under pressure from creditors and struggling with cashflow, administration should be considered.
Often referred to as business bankruptcy, liquidation allows a company's unsecured debts to be written off and means as a director you can start again.
It establishes an affordable repayment plan and protects your company from further action.However, liquidation should always be the last resort.It involves the sale of company assets in order to settle debts and finally the closure of the business.It stops any further action and gives the administrator the opportunity to address the core problems and prevent the business going bust.An administrator can be appointed by the company directors, a court following petition or a secured creditor.