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Liquidating a small business

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When the liquidation is complete the company is removed from the Register of Companies. From the date of liquidation the liquidator takes custody and control of all the company’s unsecured assets and assists secured creditors where necessary.

However you should be aware that if the company's assets are sufficent to meet these up front costs then the directors should not have to make a personal contribution.

A 7(a) loan is a lender-issued loan that can be used by a small business for a variety of different purposes.

A 504 loan typically involves a senior loan issued by a lender and a junior loan issued by a Certified Development Company (“CDC”) along with some contribution by the Borrower.

In a compulsory liquidation the company is wound up by one of its creditors or HMRC after failing to pay a debt of more than £750.

A creditors’ voluntary liquidation takes place when the directors purposefully choose to liquidate the company.