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What actually happens to company debts in liquidation? When your company goes into liquidation, the debts stay with the company — not you personally. Most of them are written off completely. That includes unsecured debts like suppliers, rent, utilities, HMRC (VAT, PAYE, Corporation Tax), and even Bounce Back Loans or CBILs under £250k. Once liquidation starts, you can finally stop worrying about those debts and start focusing on moving forward.
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