Start Afresh Liquidation

When your business is struggling with debt and financial difficulties, it can feel like there’s no way out. However, Start Afresh Liquidation could offer a responsible and supportive path to close your insolvent company while creating an opportunity to rebuild. 

This process is designed to relieve your financial pressures, meet your obligations, and open doors to new possibilities—like starting a new company after liquidation.

Start Afresh Liquidation can be used to address HMRC debts and Bounce Back Loans, provided your company meets the criteria for insolvency. This formal process allows you to wind up your company in a regulated and structured way, ensuring all creditors, including HMRC and lenders of Bounce Back Loans, are treated fairly and in compliance with UK insolvency laws.

Acting now can protect your future. Contact us today for a free, confidential consultation. Our experienced team will assess your circumstances, explain your options, and guide you toward the best solution for your needs.

What is Start Afresh Liquidation?

Start Afresh Liquidation is designed for businesses that can no longer pay their debts or operate viably. It allows directors to wind up their company in an ethical, legal and structured way. 

By doing so, you can protect yourself from risks such as wrongful trading or personal liability while settling debts and freeing yourself from the stress of mounting financial pressures.

Importantly, Start Afresh Liquidation doesn’t mean the end of your entrepreneurial journey. Many directors ask, “Can I start a new company after liquidation?”, and the answer is often yes—provided you meet legal requirements. This process gives you the chance to draw a line under past difficulties and rebuild with a fresh perspective.

How does Start Afresh Liquidation work?

The Start Afresh Liquidation process is straightforward, regulated and ensures fairness for all parties involved. Here’s how it works:

1. Initial assessment
   A licensed insolvency practitioner (IP) evaluates your company’s financial position to determine if Start Afresh Liquidation is the most appropriate solution for your circumstances.
2. Document preparation
   The IP prepares essential documents, including the Statement of Affairs, which details your company’s assets, liabilities and creditor information. This ensures full compliance with UK insolvency laws.
3. Decision process
   Creditors are invited to vote in a decision process where they vote on the appointment of a liquidator and are informed about the process.
4. Asset realisation
   The liquidator manages the sale of company assets, distributing proceeds to creditors according to legal priorities.
5. Company dissolution
   Once all assets are liquidated and debts addressed, the company is dissolved, and you are released from your obligations as a director.

This transparent process ensures that your creditors are treated fairly while giving you the opportunity to move forward. Speak to one of our licensed insolvency practitioners to find out if Start Afresh Liquidation could be the right solution for your company. 

Dealing with HMRC debts through Start Afresh Liquidation

If your company owes VAT, PAYE, Corporation Tax or other HMRC liabilities, Start Afresh Liquidation can offer a way to resolve these debts responsibly. HMRC is treated as a preferential creditor in the liquidation process, meaning it has a priority claim on available funds from the sale of company assets. 

While liquidation does not eliminate the company’s obligation to pay HMRC, it ensures:

Relief from mounting pressure: Once the liquidation process begins, HMRC collection actions, such as distraint or winding-up petitions, are paused.

A legally compliant resolution: Directors fulfil their duties to address HMRC debts rather than allowing them to escalate.

Protection for directors: By entering liquidation, you reduce the risk of accusations of wrongful trading or penalties for unpaid tax liabilities.

Liquidating a company with a Bounce Back Loan

Bounce Back Loans are included in the Start Afresh Liquidation process if your company cannot repay them due to insolvency. These loans were not allowed to be secured, meaning that lenders should not hold you personally liable if the debt cannot be paid.

As a result, Bounce Back Loans are treated like other unsecured debts during liquidation. Key points to understand include:

Fair treatment of creditors: Like other creditors, the Bounce Back Loan lender will be repaid from the proceeds of liquidated assets, subject to available funds and the statutory priority order.

The company, not you personally, is liable: As long as you acted responsibly and in accordance with the loan’s terms, you shouldn’t be held personally liable for the Bounce Back Loan.

Misuse of funds is taken seriously: If Bounce Back Loan funds were used for non-business purposes or excessive director withdrawals, these actions could be investigated and you might face consequences.

3 reasons to act now

Delaying action during financial challenges can worsen your situation. Acting quickly gives you the highest chance of benefiting from the full protections offered by Start Afresh Liquidation, including:

1. Stop creditor actions: Waiting too long can lead to serious consequences, including County Court Judgments (CCJs), statutory demands or even a winding-up petition. Start Afresh Liquidation halts these threats, giving you space to address your situation constructively.

2. Protect your personal position: Trading while insolvent exposes you to personal liability for company debts. Start Afresh Liquidation helps you meet your legal obligations and avoid these risks.

3. Regain control and peace of mind: Liquidation relieves the immediate stress of financial difficulties, letting you focus on the future with clarity and confidence.

Take the first step today

If you’re wondering, “Can you liquidate a company and start again?”, or “Can I start a new company after liquidation?”, the answer could be closer than you think. Start Afresh Liquidation provides the opportunity to close your insolvent business responsibly and begin again with confidence.

Contact us today for a free, confidential consultation. Our experienced team will assess your circumstances, explain your options, and guide you toward the best solution for your needs.