Email David Kirk direct by clicking on his name.

What debts are written off on liquidation?

Last updated: April 16, 2021

The Quick Answer

The following liabilities (also called unsecured creditors) are written off on liquidation:

  • Trade suppliers.
  • Utilities.
  • VAT.
  • PAYE.
  • Corporation tax.
  • Unsecured bank debt like Bounce Back Loans.
  • Business Rates.
  • Employee claims including arrears of pay, redundancy and tribunal claims.

The debts not written off by liquidation include:

  • Secured debts such as hire purchase.
  • A debenture as the lender has security on the company assets.
  • Debts you have personally guaranteed such as a bank overdraft.

The answer in more detail

Although liquidation brings the company to an end the unsecured creditors can still claim on the company assets that are left. They can claim after secured and preferred creditors and expect to get a payment equally from what is left.

 

tip

If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

More questions in this section

Author: David Kirk - ACA FABRP
Everything you need can be done online.
No need to meet anyone in person.
We cover all of England and Wales.
Just a quick email to say a heartfelt thank you for your very calm, considered, expert advice regarding my circumstances on Tuesday. Things looked bleak before you explained my options much more clearly, in simple layman’s terms.
Rob Elliott

Request a callback

Simply fill out the short form below and I will get back to you.

David Kirk Portrait

David Kirk

Licensed Insolvency Practitioner

https://wpmudev.com/project/wp-defender/