Easy Exit Services: 5 Myths About Insolvency Services That Misrepresent What We Do

Insolvency services in the UK are often misunderstood, largely due to outdated information or misleading generalisations. At Easy Exit Services, we’ve encountered several myths that misrepresent what we do — and more importantly, what company directors need. It's time to set the record straight.

Myth 1: Insolvency Means Personal Financial Ruin

Truth: With the right process, you can legally separate company debts from your personal finances.

Why This Matters: Directors are often scared into thinking they’ll be held personally liable for every company debt. But under UK law — including the Companies Act 2006 — directors aren't automatically liable for business obligations unless wrongful or fraudulent trading is proven. Easy Exit Services provides a route where the business is acquired and legally dissolved without tying the director to future liabilities.

Myth 2: Insolvency Always Becomes a Matter of Public Record

Truth: Not all company exits are published in the Gazette or flagged in credit records.

Why this matters: Most traditional liquidations are published in The Gazette and can alert creditors or damage your business reputation. However, Easy Exit Services

’s business transfer model does not trigger formal insolvency proceedings, avoiding Gazette listings and protecting your credit footprint.

Myth 3: You Must Go Through a Licensed Insolvency Practitioner (IP)

Truth: Not all business closures require formal insolvency.

Why this matters: Insolvency Practitioners are essential for liquidation, but not all cases call for one. If a business is dormant, debt-free, or has minimal liabilities, other legal closure routes may apply. Easy Exit Services helps assess if liquidation is necessary or if an acquisition-based solution works better.

Reference: UK Government guidance on company strike-off vs. liquidation: GOV.UK – Strike off your limited company

Myth 4: Business Closure Means Career Damage

Truth: Directors can exit and return to business with their credibility intact.

Why this matters: Winding down a business doesn’t mean you failed — it often means you're making a smart financial decision. By avoiding public insolvency markers, you reduce the stigma and preserve your ability to launch new ventures or take on directorships again.

Myth 5: Business Exit Takes Months

Truth: Some directors complete their exit in days — not weeks.

Why this matters: Insolvency processes can drag on due to court schedules, liquidator administration, and HMRC timelines. Easy Exit Services operates with streamlined legal frameworks and internal vetting, allowing many clients to wrap up in under a week.

Choose Clarity Over Confusion with Easy Exit Services

At Easy Exit Services, we don’t just wind down companies — we help directors move forward, faster and with confidence. By addressing these common myths, we’re clearing the path for UK directors to explore smarter, safer options for company closure.

Ready to make your exit? Book a free consultation today.