Professional Company LiquidatorsServing Abberley

A licensed insolvency practitioner takes control of the company, realises its assets, settles outstanding debts, and distributes any remaining funds to creditors. They also investigate the directors' conduct and ensure the company is dissolved properly, providing a clean exit for directors.

Costs vary depending on the complexity of the case, but most liquidators work on a fixed fee or a percentage of the assets realised. You should ask for a clear breakdown of fees before proceeding. Some liquidators may offer a no-win, no-fee arrangement for insolvent companies with no assets.

Compulsory liquidation is ordered by a court, usually following a creditor's petition. Creditors' voluntary liquidation is initiated by the directors and shareholders, who pass a resolution to wind up the company. A licensed professional can advise which route is appropriate for your situation.

The process typically takes between six and twelve months, depending on the complexity of the company's affairs. Simple cases with few assets may be concluded more quickly, while those with extensive investigations or legal challenges can take longer. Your liquidator will provide a timeline based on your specific circumstances.

No. Once a liquidator is appointed, they take control of the company and you lose the authority to trade or manage its affairs. You must cooperate fully with the liquidator and provide all relevant records. Continuing to trade without the liquidator's consent could lead to personal liability.

Alternatives include a company voluntary arrangement, administration, or informal restructuring. These options may allow the business to continue trading or achieve a better return for creditors. A licensed professional can assess whether any of these alternatives are viable for your company before you decide on liquidation.

In most cases, directors are not personally liable for company debts if they have acted properly. However, personal liability can arise if you have given personal guarantees, misused funds, or traded wrongfully. A liquidator will investigate your conduct and advise on any potential claims against you.

Employees are entitled to claim unpaid wages, holiday pay, and redundancy from the National Insurance Fund, but this is not guaranteed. The liquidator will assist employees with making claims and will provide the necessary forms. Employees are also entitled to be consulted about the liquidation process.

Yes, you still need a licensed insolvency practitioner to formally wind up the company. Even if there are no assets, the liquidator will investigate the company's affairs and ensure that creditors are notified. This provides a proper legal closure and prevents the company from being struck off without addressing its debts.

Look for a licensed insolvency practitioner with experience in your industry and a transparent fee structure. Check their regulatory status and read reviews from other directors. You can connect with a specialist listed on AccountingFirms who can guide you through the process and answer your questions.