Company insolvency questions answered
These are the questions worried directors actually ask, answered straight and sourced to UK rules. The recurring theme is reassurance plus realism: in most cases you are not personally liable for company debts, but there are specific exceptions worth understanding, and in almost every case acting early gives you more options and less risk. Use these answers to get your bearings, then the relevant guide or tool for the detail, and a free call with a Licensed Insolvency Practitioner when you want advice on your own situation.
Am I personally at risk?
Will I lose my house if my company goes under?
Not because of the insolvency itself. Company debts belong to the company. Your home is only at risk if you gave a personal guarantee secured on it, or owe the company money personally through an overdrawn loan account. Take advice before assuming the worst.
Can I be made personally liable for company debts?
Usually no, but there are exceptions: a personal guarantee, an overdrawn director loan account, wrongful trading, misused Bounce Back Loans, or some unpaid PAYE and National Insurance. Early advice is the best protection.
Can I be a director again after liquidation?
Usually yes, unless you are disqualified. There are rules on reusing the old company name under section 216. A practitioner will explain the restrictions.
Closing or rescuing the company
What is the cheapest way to close a company?
For a solvent, debt-free company, strike off via DS01 is cheapest. With debts, that usually fails and a CVL is the proper route. Use our closure route chooser.
Can my insolvent company be saved?
Often yes, if the underlying business is viable. Administration or a CVA can deal with historic debt while the business keeps trading. Viability is the deciding factor.
How much does liquidation cost?
A straightforward CVL typically costs from around £4,000 to £7,000 plus VAT, usually met from company assets. Our liquidation cost calculator gives a range for your situation.
HMRC and creditors
What happens if my company cannot pay HMRC?
Engage early. HMRC often agrees a Time to Pay arrangement over up to 12 months if it is realistic. Ignoring HMRC leads to enforcement and ultimately a winding-up petition.
I have a winding-up petition, what do I do?
Treat it as urgent. You usually have a short window before the bank account is frozen and the hearing. Get advice the day you are served. See winding-up petitions and our timeline tool.
Can a company be wound up over one unpaid invoice?
A creditor owed more than £750 can ultimately petition to wind the company up, though they usually escalate first through demands. Disputed debts are treated differently. Do not ignore it.
Speak to a Licensed Insolvency Practitioner
Tell us briefly what is happening and we will arrange a free, confidential, no obligation call with a Licensed Insolvency Practitioner. The earlier you get advice, the more options you usually have.
Free, confidential and no obligation. We are an independent information service and introduce directors to a Licensed Insolvency Practitioner. This is general information, not regulated advice.