Do I need to settle company debts before it can be dissolved?

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I need to dissolve my limited company. We’ve taken on a bit of debt, but that has little to do with the reason we’re shutting down. The debts we owe are completely affordable, and I plan to settle them. My question is whether I can settle those debts after I have officially dissolved, or whether I must settle my debts first?

Cheers

Nathan Davis

Answers

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Yes, you have to settle your outstanding business debts before applying to dissolve your company. Any assets or finances that have not been transferred from the company prior to its dissolution will be transferred to the Crown and you will not able to claim them without going through a lengthy procedure.

If your company is insolvent (unable to pay its debts), you must use the creditors’ voluntary liquidation process. A liquidator will be appointed to take control of your company and sell its assets to pay your creditors.

a year ago
 

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