Liquidation is not a way to close down a company that has debts in the hope of writing them off. It is generally considered a last resort due to its cost and negative impact on the business's reputation. If a company is insolvent, directors who continue to trade can be held liable. Other factors need to be considered when closing down a company besides solvency. A better option for small businesses that have been impacted by COVID-19 is to apply for a Bounce Back Loan.