Myth No1
Insolvency will hurt my credit rating for ten years.
With liquidation or an administration order this will not affect your personal credit in any way. Although with a personal bankruptcy your information will stay on your credit report for six years, assuming you begin rebuilding your credit immediately and keep your credit clean, you can usually obtain a mortgage within eighteen to twenty-four months after discharge.
Myth No 2
Everyone will know about my insolvency.
Liquidations are advertised in the London Gazette. When was the last time you looked in the London Gazette? Previously insolvencies were advertised in the local press, this was stopped a few years ago and now is not a requirement.
Myth No 3
I am a bad person for filing insolvency or bankruptcy.
There is a stigma associated with filing for any insolvency; a stigma that the lobbyists for the credit card companies and the banks broadcast.
The truth is that bad things happen to good people. There is a reason that one company petitions for any insolvency every four minutes in the UK and it is not because they are bad people. On the contrary, they are good people looking for a solution to their financial problems.
Myth No 4
I can never be a director of a company if I liquidate my current company.
You can start a new company up before or after you liquidate your current company and you can remain a director unless such time as you are disqualified from being a director.
Myth No 5
The banks will never lend me money ever again after a liquidation.
Immediately after (or even before) the liquidation you can get a bank account without any problems. Banks generally will assess each application on its merits before lending any finances.
Myth No 6
I will lose everything I own.
Liquidation of your company will not affect your personal wealth or assets that you and your family own, unless, of course, you gave any form of security or personal guarantees.
If you feel you need further advice on Insolvency please contact us or call 0800 955 3595 today
