Company strike off has been suspended – what now?

• Your first option is to simply submit the strike off application again and hope that your creditor does not oppose it this time around. You may be lucky and your application may slip through the net, however, the chances are that you are now on your creditor’s radar and they will be keeping a close eye on your actions and will be ready to step in with a further objection. You should also be aware that your company can be restored to the register even after it has been struck off should a creditor be able to give a valid reason for this. 
• If your application has been suspended due to a small outstanding debt, you could pay off your creditor and once this has been settled simply submit the strike off application again. As your company now does not owe anything, there is no reason for your application to be rejected. This route is obviously dependent on the size of your company’s debt and your ability to clear the amount owing.

“After submitting my '60 Second Test' I received a complimentary Insolvency Options guide packed full of useful information. The team of insolvency specialists phoned me back in less than 10 minutes after reviewing my details and guided me through the next steps. Really helpful! Thank you Sophie!”

Patricia 

 

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Sophie Schofield
Business Debt Expert

• Extreme caution must be taken if your company owes multiple amounts of money to a variety of creditors. Unless you have the funds the clear the entirety of your debts, you should steer well clear of making any payments to creditors prior to striking off your company. For example, if you have a number of creditors but only one of these has objected to your company’s strike off, you cannot just pay this one debt off and then proceed to dissolve your company. This type of action is known as making a preference payment and is likely to be viewed as wrongful trading if your company is later investigated.
  
  
• Your final option is to enter into a formal liquidation procedure to bring about the end of your company. This will typically take the form of a Creditors’ Voluntary Liquidation (CVL). During a CVL an insolvency practitioner will be appointed to manage the affairs of the company and close it down. Any assets in the company will be liquidated and distributed to outstanding creditors as far as possible. Any debts left outstanding will be written off as part of the process unless they have been personally guaranteed. 

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Alternatives to company strike off

Following a suspended strike off application, you should seek the services of a licensed insolvency practitioner to get a full picture of the options open to you. 

If you are resolute that you want to close your company, a licensed insolvency practitioner can talk you through the liquidation process and how this will ensure the company is closed down in the correct way. Following the liquidation, you do not need to worry about creditors petitioning for your company to be reinstated, instead you can rest assured that the company has been formally shut down and you can move on.

If you are considering closing down your company, you should make it a matter of priority to contact a licensed insolvency practitioner who can give you the help and advice you need to make the best decision for you and your company. Real Business Rescue has a nationwide team of licensed insolvency practitioners who can talk you through your options and help you decide on your next move. Call our expert team today to arrange a free no-obligation consultation.