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Directors should avoid using the strike-off procedure to evade debt repayment, as this can lead to serious repercussions. The government currently opposes strike-off applications if there are outstanding bounce back loans, and legislation has made such applications illegal. Directors face potential disqualification, fines, or imprisonment for attempting these actions. Additionally, failing to notify interested parties about a strike-off application is a criminal offense punishable by up to 12 months in prison. Creditors can restore a dissolved company within 20 years to recover debts. In cases of insolvency, a Creditors Voluntary Liquidation (CVL) may be the only viable option. An experienced insolvency practitioner can provide the necessary guidance.
