If you are considering
sole trader liquidation then you may want to know all the other options
available to you.
A sole trader liquidation
is often referred to as the winding up or dissolution of a sole proprietorship,
although such terms are rarely used outside of the corporate context.
It is the sad end of a business.
For a small business,
liquidation is as simple and as easy as closing the business, selling
the stocks or the assets, paying any outstanding debts and simply ceasing
to trade. The business owner is then left with whatever cash is left
after all the necessary bills are paid. However, closing or winding
up a company (as oppose to a sole proprietorship) is a more complex
process and is one that can take months to finish. A business’s
liquidation sale can last for several months.
Liquidation is one
of the choices that a business experiencing financial troubles may take.
But there are other options for the sole trader. Liquidation is not
the only route to take when the ever-popular IVA (Individual Voluntary
Arrangement) is available, brought in by the Insolvency Act of 1986
to deal with personal insolvency without resorting to the stresses and
stigma of bankruptcy.
It could be that
an expert looking at your situation will be able to spot a solution
which you had not thought of, or which you were not even aware of. There
may be a combination of things that can be done to rescue the business
completely by differentiating between assets owned by the business and
assets owned by the business owner as an individual, and then providing
separate solutions for each.
If you would like
to talk about sole trader liquidation to a specialist with 17 years corporate
insolvency experience then enter your details into the web form below
for a no-obligation chat.
if you need help with personal debt (rather than business related debt)
go to our free debt
management plan application form.
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