What Happens If a Company Has Debts During Strike-Off?

A company should normally settle all debts before applying for strike-off. If a creditor becomes aware that a company with outstanding debts is being dissolved, they may object to the strike-off with Companies House.

If an objection is accepted, the strike-off process will be suspended until the issue is resolved.

If the company is dissolved while debts still exist, a creditor may apply to the court to restore the company to the register in order to recover the outstanding amount. In most cases, creditors pursue the company itself rather than the directors or shareholders, unless a personal guarantee was provided.