Time-Sensitive Decision

Company With Debts? Liquidate or Rescue Your Company

Facing mounting company debt can feel overwhelming. You're not alone—and you have options. Expert guidance to help you make the right decision for your business, employees, and personal financial future.

Protect Your Assets

Safeguard personal finances

Unbiased Advice

Clear options, no pressure

Free Debt Assessment
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Understanding Your Two Main Options

When your company faces debt, you essentially have two paths: rescue the business or close it down through liquidation. Each has different implications for you, your employees, and your creditors.

Business Rescue

Save your company, protect jobs, and maintain trading relationships through restructuring and professional support.

Company Voluntary Arrangement (CVA)

Company Liquidation

Close the company in a controlled, legal manner while protecting directors from personal liability where possible.

Time to Pay (TTP) with HMRC

The Right Choice Depends on Your Situation

There's no one-size-fits-all answer. The best option depends on your company's viability, debt level, cash flow, director guarantees, and future prospects. Our free assessment helps you understand which path makes sense for your specific circumstances.

Free Assessment Tool

Which Option Is Right for You?

Answer a few quick questions to get personalized guidance on whether business rescue or liquidation makes more sense for your situation.

1 Is your company currently profitable or can it return to profitability with support?

2 How much debt does your company have?

3 Do you have personal guarantees on business debts?

4 Are you facing legal action (winding up petition, statutory demand, court judgments)?

5 Do you want to continue running this business?

Your answers are completely confidential and help us provide better guidance

Prefer to speak directly? Call us now on 01484 861406

Business Rescue Options

When Rescue Makes Sense

If your business has a viable future, these options can help you restructure debt, protect assets, and get back on track.

Company Voluntary Arrangement (CVA)

A CVA allows you to negotiate reduced debt payments with creditors while continuing to trade. 75% of creditors must agree to the proposal.

Best For:

  • Companies with viable trading models but temporary cash flow issues
  • Businesses with valuable contracts or customer relationships worth preserving
  • Directors who want to avoid liquidation

Key Benefits:

  • Continue trading without interruption
  • Stop creditor legal action and winding up petitions
  • Reduce overall debt (typically 30-70% written off)
  • Protect director reputation and future borrowing
Learn More About CVAs

Financial Restructuring

Comprehensive review and reorganization of your business finances, operations, and debt structure without formal insolvency.

Best For:

  • Profitable businesses with manageable debt levels
  • Companies needing operational improvements alongside debt management
  • Directors wanting to avoid formal insolvency procedures

Key Benefits:

  • Informal negotiations with creditors
  • No public insolvency record
  • Improved operational efficiency
  • Strategic business improvements
Learn More About Restructuring

HMRC Time to Pay

Negotiate extended payment plans with HMRC for overdue tax debts. Often combined with other rescue strategies.

Best For:

  • Companies with substantial HMRC debts (VAT, PAYE, Corporation Tax)
  • Businesses with temporary cash flow problems
  • Directors facing enforcement action from HMRC

Key Benefits:

  • Spread payments over 6-12 months
  • Stop enforcement action and winding up petitions
  • No formal insolvency required
  • Preserve business reputation
Learn More About HMRC Solutions

Refinancing & New Funding

Secure new finance to pay off urgent debts, giving your business breathing room and better payment terms.

Best For:

  • Companies with valuable assets (property, equipment, invoices)
  • Businesses with good future prospects but current cash shortfall
  • Directors able to provide security or guarantees

Options Include:

  • Invoice financing / factoring
  • Asset-based lending
  • Business loans or overdrafts
  • Director/investor funding
Discuss Funding Options

Keys to Successful Business Rescue

Act Early

The sooner you seek help, the more options you have

Viable Business

Core business model must be sound and profitable

Creditor Support

Good relationships and reasonable proposals help

Expert Guidance

Professional support increases success rates dramatically

Liquidation Options

When Liquidation Is The Right Choice

Sometimes closing the company is the most responsible decision. Doing it properly protects you from personal liability and gives you a fresh start.

Creditors' Voluntary Liquidation (CVL)

The most common form of liquidation for insolvent companies. Directors voluntarily close the company with a licensed insolvency practitioner.

Best For:

  • Companies that cannot pay their debts
  • No viable path to profitability
  • Directors ready to move on

Key Benefits:

  • Directors choose the liquidator (vs court appointment)
  • Stops all creditor pressure immediately
  • Directors protected from wrongful trading liability (if acted responsibly)
  • Can start a new business immediately (in most cases)
Learn More About CVL

Pre-Pack Administration

Save the viable parts of your business by selling assets to a new company (often director-owned) while leaving debts behind. Known as "phoenix" process.

Best For:

  • Companies with a good core business but unsustainable debts
  • Valuable customer relationships, contracts, or goodwill
  • Directors wanting to continue in the same business

Key Benefits:

  • Save jobs and preserve business value
  • Quick process (often completed overnight)
  • Continue trading with same customers/suppliers
  • Legally compliant fresh start
Learn More About Pre-Packs

Members' Voluntary Liquidation (MVL)

Tax-efficient way to close a solvent company and distribute assets to shareholders. Only for companies that CAN pay their debts.

Best For:

  • Solvent companies being voluntarily closed
  • Directors retiring or changing business structure
  • Companies with substantial retained profits

Key Benefits:

  • Capital gains tax treatment (10% vs 20%+ income tax)
  • Entrepreneurs' Relief may apply
  • Clean closure with no outstanding debts
  • Professional handling of closure process
Discuss MVL Options

Compulsory Liquidation

Court-ordered liquidation usually initiated by creditors through a winding up petition. This is what you want to AVOID through early action.

Disadvantages:

  • Directors have no control over the process
  • More expensive (court and legal fees)
  • Public record and damaging to reputation
  • Greater scrutiny of director conduct

Important: If you've received a winding up petition, act immediately. You may have as little as 7 days to respond.

Learn More About Compulsory Liquidation

Protecting Yourself During Liquidation

What You Should Do

  • Stop trading when insolvent
  • Seek professional advice early
  • Keep accurate records
  • Cooperate with liquidator
  • Act in creditors' best interests

What to Avoid

  • Taking on new credit when insolvent
  • Preferring some creditors over others
  • Removing company assets
  • Ignoring professional advice
  • Burying your head in the sand

Your Rights

  • Start a new business immediately (usually)
  • Not personally liable for company debts (unless guarantees)
  • Challenge liquidator decisions
  • Legal representation if needed

Making The Right Decision

Compare these key factors to understand which path makes most sense for your situation. For a deeper dive into each option, read our comprehensive guides on Company Voluntary Arrangements and dealing with company debts.

Decision Framework

1

Business Viability

Consider Rescue If:
  • • Core business is profitable
  • • Strong customer relationships
  • • Problem is cash flow, not business model
  • • Orders/contracts in pipeline
Consider Liquidation If:
  • • Consistently unprofitable
  • • Declining market/demand
  • • No clear path to profitability
  • • Business model no longer works
2

Debt Level vs Revenue

Rescue More Likely:
  • • Debt is less than 50% of annual revenue
  • • Can repay over 3-5 years
  • • Creditors are willing to negotiate
  • • Some debts are disputable
Liquidation More Appropriate:
  • • Debt exceeds annual revenue
  • • Cannot realistically repay
  • • Multiple creditors demanding payment
  • • Legal actions already started
3

Personal Guarantees

With Guarantees:
  • • Rescue protects personal assets
  • • Avoid trigger of guarantee enforcement
  • • Negotiate guarantee release as part of deal
  • • Continue earning to pay guarantees
Without Guarantees:
  • • More freedom in decision
  • • Limited personal financial risk
  • • Liquidation may be cleaner option
  • • Fresh start more achievable
4

Your Commitment & Energy

For Business Rescue:
  • • Requires significant time and effort
  • • Must be passionate about saving business
  • • Need mental/emotional resilience
  • • Prepared for 6-12 month turnaround
For Liquidation:
  • • Faster resolution (weeks not months)
  • • Less ongoing stress and worry
  • • Can start planning next chapter sooner
  • • Definitive closure and fresh start

Common Misconceptions

Myth

"Liquidation means I can never run a business again"

Reality

Most directors can start a new business immediately after liquidation, unless disqualified for misconduct.

Myth

"I'm personally liable for all company debts"

Reality

You're only liable for debts you've personally guaranteed or if you've acted improperly (wrongful trading).

Myth

"Business rescue always works if you try hard enough"

Reality

Some businesses genuinely cannot be saved. Knowing when to let go is also a sign of good leadership.

Myth

"Liquidation is only for failed businesses"

Reality

MVL is used by successful businesses closing down. Sometimes liquidation is a strategic choice, not a failure.

How We Help You Decide

Our process ensures you make an informed decision with complete understanding of your options

1

Free Consultation

Confidential discussion about your situation, debts, and concerns. No judgment, just facts.

2

Business Analysis

We review your financials, viability, and realistic options based on hard data.

3

Clear Recommendations

Plain English explanation of each option with pros, cons, costs, and likely outcomes.

4

You Decide

Armed with knowledge, you make the choice. We then execute your decision professionally.

Why Work With Tenable Business Support?

Unbiased Guidance

We don't push you toward liquidation or rescue. We help you find the right solution for YOUR situation.

Director Protection Focus

We prioritize protecting you from personal liability while solving business problems.

24/7 Availability

Crisis situations don't wait. Neither do we. Emergency support when you need it most.

Empathetic Approach

We understand the stress and emotional toll. You'll be treated with respect and dignity.

Transparent Pricing

Clear fee structures with no hidden costs. You'll know exactly what to expect.

Making the right decision requires expert guidance. Our team specializes in helping directors protect their personal assets while finding the best solution for their business. Learn more about director protection strategies and understanding your true liability risks.

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Don't Face This Decision Alone

Whether you choose rescue or liquidation, getting expert guidance now can save you thousands and protect your personal assets. Free, confidential consultation with no obligation.

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Frequently Asked Questions

Common questions about choosing between rescue and liquidation

Still have questions? Check out our comprehensive FAQ page or explore our expert articles and guides for more detailed information about business rescue and insolvency options.

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