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What if I can't afford to put my company into liquidation?

By The Insolvency Service

If you or the company cannot afford the costs of liquidation there are two options:
The company could simply stop trading and not enter into insolvency proceedings. It would then be for one of the creditors of the company to decide whether they petition for the winding up of the company.

Or

The company could stop trading and then the directors apply for voluntary dissolution. A private company may apply to the Registrar of Companies to be struck off the Register under section 1004 and 1005 of the Companies Act 2006. This is not an alternative to formal insolvency proceedings, and creditors may prevent the striking off. Even if the company is struck off and dissolved, creditors and others could apply for the company to be restored to the Register.

Published August 2013