If a company is in financial difficulty, voluntary administration is designed to resolve a company future direction quickly with an independent voluntary administrator taking full control of the company.
Early discharge of bankruptcy may be applied for at any time after 6 months under certain circumstances. Discharge of bankruptcy releases a person from any future obligation after the bankruptcy period has ended.
A deed of company arrangement is a binding arrangement between a company and its creditors governing how the company’s affairs will be dealt with, which may be agreed to as a result of the company entering voluntary administration.
Liquidation is in effect the bankruptcy of a company. It is whereby a Liquidator is either appointed or by the members of the company or a creditor. The Liquidators role is to sell up and dispose of the assets of the company and realise on them for the benefit of the creditors.