Members Voluntary Liquidation (MVL) is a process that allows a solvent company to be wound up and dissolved. This is a voluntary process, initiated by the company’s shareholders, and is often used when a company has reached the end of its useful life or when the shareholders wish to retire. One of the benefits of an MVL is that it …
A declaration of solvency is a legal document which must be signed by a majority of directors of a company before it is placed into a Members Voluntary Liquidation. If you are considering closing your solvent business, our team at The Insolvency Experts assist you with a Members Voluntary Liquidation. What does a declaration of solvency mean? A declaration of …
When you’re closing down a business, its financial position will have a huge effect on the route to closure. While many directors may have heard the terms Members’ Voluntary Liquidation and Creditors’ Voluntary Liquidation, they may not know the full difference between them or which one may be the most appropriate for their business. What is a Members’ Voluntary Liquidation? …
The process of a Members’ Voluntary Liquidation is handled fully by a licensed insolvency practitioner who will identify company assets, repay any creditors and distribute the remaining funds to shareholders. Depending on the size of the company and the complexity of the case, a Members’ Voluntary Liquidation can take up to a year to complete. How long does it take …
If your company has no debts, you can close it down by either taking it off the Companies House register or using a formal liquidation process. Some of the most common ways to do so include Company Strike off and Members Voluntary Liquidation, but there are a few differences you should be aware of before you choose one. What is …
Members Voluntary Liquidation can be the most effective way to liquidate your business if it is still solvent, but there are tax considerations you need to be aware of. What is an MVL? Members Voluntary Liquidation, or an MVL, is an official process for closing down a solvent company. Solvent companies are those that have more assets than liabilities and …
Since companies who took a Bounce Back Loan will have started repaying their loan back, many directors should be factoring repayments into forecasts. However, many shareholders may be worrying that if there isn’t enough funds to repay the loan, will they be held liable? Do shareholders have to give a personal guarantee for a Bounce Back Loan? With Bounce Back …
The Bounce Back Loan scheme by the UK Government was a saviour for many businesses; however, a question asked by many business directors is if their Bounce Back Loan could be used to pay dividends. How can a Bounce Back Loan be used? A Bounce Back Loan (BBL) must be used in a way that provides economic benefit to the …
If you operate as a sole trader and cannot repay your Bounce Back Loan, it is understandably a very stressful experience. Sole traders do not have the same protection as limited companies, but you do still have some options to help you pay back the loan. What can a sole trader use a Bounce Back Loan for? Just like limited …
If your company cannot repay its Bounce Back Loan, then it is in effect, insolvent. If this is the case, you may be issued a winding-up petition from your lender. Will banks write off bounce back loans? Your Bounce Back Loan (BBL) will only ever be written off if repayment by your business is impossible. If you can’t repay the …