Wind Up Wind Down

Making a loss does not automatically mean that a company should be liquidated. Learn the warning signs of financial distress, the difference between commercial and factual insolvency, and when SARS arrears, unpaid employees, rent, creditor action and personal surety may mean it is time to consider company liquidation in South Africa.

Becoming ill or disabled can reduce your income and make existing debt difficult to manage. Before making permanent financial decisions, check your sick leave, UIF benefits, credit life insurance, disability cover and other financial relief that may already be available.

Company tax debt does not automatically become the personal debt of a director. We explain when SARS may pursue personal liability, including negligence or fraud, PAYE not paid over, asset transfers, inter-company loans and circumstances involving abuse of the corporate structure.

Lost your job and struggling to pay your debt? Before making major financial decisions, check UIF, credit life insurance and creditor assistance, then assess whether financed assets or a formal debt solution need to be considered.

Company debt does not automatically become a director's personal debt. Find out when personal liability may arise even where no personal surety has been signed.

If your debt repayments have become unaffordable, you may be able to negotiate lower payments with creditors. The key is making sure the new arrangements actually make your overall financial position sustainable.