In theory, you have a range of options for dealing with the insolvency of a limited company or LLP:
In practice you may not have so many. Your options can be limited by
The size of the business - smaller businesses have fewer options because costs become a greater issue;
Whether the business is viable or not. If the underlying business has deteriorated, say because you have not addressed the company's problems over a long period of time, the less likely it is that there is a business to save or that if there is a business to save, that it can be saved in the existing company;
Resources - a lack of ready cash at the relevant time is often a major issue;
Time - you may not have the time to implement the ideal solution. Many directors leave it too late to implement one of the less formal options;
Willingness - you may want to draw a veil over this project, other 'interested parties' such as bankers and major suppliers may be not be interested in supporting a particular route or have a strong preference for another;
Whether solvency can be restored, for example by a director or parent company writing off part of their debt owed.
Each solution has its own advantages and disadvantages, and is more appropriate for some circumstances than others.
For the option of trying to manage your way out, read my website on turning the business around, click here. For the option of informal settlement, read the corresponding section included within the personal insolvency section of my site as the general prnciples will be little different.
Click on this link to be taken to a decision tree to explore whether Administration, Receivership, CVA or Creditors Voluntary Liquidation could be an option for you. Then click on the links to the left to explore each available option in detail.