If you are trading insolvently, you may need to close your business.
You are insolvent if your business cannot pay its debts as they fall due, or there are not enough assets to sell to pay off the debt in full.
If you are a director of a limited company, it could be an offence to carry on trading when your company is insolvent.
Read more about insolvent trading
They can be made if you are a sole trader, a partner in a partnership or have a limited company.
You may be able to continue trading.
Read more about voluntary arrangements
If you are a sole trader, going bankrupt will mean you are no longer liable for any business or personal debts.
If you go bankrupt your business and personal assets could be sold.
It will also make it difficult to carry on being self-employed.
Read more about personal bankruptcy
Closing your limited company
If your limited company is insolvent you need to think carefully about stopping trading and closing it down.
There are formal and informal ways of closing your company.
We can help you to find out about the ways of closing your limited company and which is the right option for you.
Read more about closing a limited company