If your business is unable to meet its debts as they become due, it's important that you seek advice to find out more about your options. Firstly, you should work out if your insolvency is actually a personal debt, rather than a business debt.

Company insolvency options include Receivership, Voluntary administration and Liquidation.

This process can be different depending on the circumstances eg whether the company is trading, or depending on what assets it has.

A liquidator is appointed when a company is placed into liquidation. The liquidator takes control of all the company’s unsecured assets, which are sold to repay the creditors.

If a sole trader or partnership goes bankrupt, the Official Assignee will decide how the business will be dealt with including the sale of any assets the business owns.

Funds that cannot be distributed from a liquidation must be paid to the Public Trust and will become part of the Liquidation Surplus Account (LSA).