Expert Company Liquidatorsin Ashton Under Lyne

The cost varies depending on the complexity of your company's affairs, but most professional liquidators work on a fixed fee basis or charge a percentage of the assets realised. In a creditors' voluntary liquidation, fees are often paid from company assets, so you may not need to pay personally, but always confirm the fee structure upfront.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, or whose liabilities exceed its assets, is eligible for a creditors' voluntary liquidation. A licensed insolvency practitioner will review your financial position and confirm whether liquidation is the appropriate course of action.

The process begins with an initial consultation with a licensed insolvency practitioner. They will assess your company's financial position and, if liquidation is appropriate, help you call a meeting of shareholders to pass a resolution. Creditors are then notified and a liquidator is formally appointed to manage the winding-up.

The duration depends on the complexity of the company's affairs. A straightforward liquidation may be completed in as little as six months, but cases with complex asset realisation or legal issues can take longer. Your liquidator will provide a realistic timeline after reviewing your situation.

Once a company enters liquidation, the liquidator takes control and trading must cease, except for actions necessary to preserve asset value or complete contracts. Directors lose their powers, so you cannot continue normal trading activities. However, you may be able to start a new business, subject to certain restrictions.

Alternatives include a company voluntary arrangement (CVA), which allows you to repay debts over time, or formal restructuring. Sometimes an administration process can rescue the business as a going concern. A licensed professional can explain which option best suits your company's financial position and long-term goals.

Generally, directors are not personally liable for company debts, provided they have acted within the law. However, if you have given personal guarantees or have been involved in wrongful trading or fraudulent activity, you may be held personally liable. A professional can advise on your specific exposure.

Employees are made redundant when a company enters liquidation. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, which is a government scheme. The liquidator will provide employees with the necessary claim forms and guidance.

In most cases, directors can appoint a liquidator by calling a shareholder meeting and passing a resolution, without involving the court. This is known as a creditors' voluntary liquidation. However, if the company is already subject to a winding-up petition, the court may appoint a liquidator instead.

You will need to provide financial records, including accounts, bank statements, tax returns, and details of assets and liabilities. You should also list any creditors and employees. The liquidator will use this information to assess the company's position and manage the liquidation process efficiently.