Company Liquidators in Bangorfor Professional Guidance

The cost of liquidation varies depending on the complexity of your company's affairs, the number of creditors, and the value of assets. Typically, fees range from £4,000 to £8,000 plus VAT for a straightforward creditors' voluntary liquidation. A licensed insolvency practitioner will provide a fixed fee quote after reviewing your company's financial position.

Your company is eligible for liquidation if it is insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. You must pass a board resolution and, for a creditors' voluntary liquidation, hold a meeting of creditors. A licensed practitioner will assess your eligibility and guide you through the formalities.

The timeline for a creditors' voluntary liquidation typically takes between six and twelve months to complete, depending on the complexity of realising assets and dealing with creditor claims. A simple case with minimal assets may conclude sooner, while a complex liquidation with litigation or investigations can take several years.

Yes, you can liquidate an insolvent company with no assets, but you will need to fund the liquidation costs yourself. The liquidator's fees must be paid, and if there are no assets to cover them, the directors may need to contribute personally. This is often referred to as a 'no-asset liquidation'.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to restructure the business, or a formal dissolution if the company is solvent. You could also consider negotiating directly with creditors for extended payment terms or a debt restructuring plan. Each option has different implications for directors.

When a company enters liquidation, employees are automatically dismissed from the date the winding-up order is made or the resolution is passed. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide employees with the necessary forms and guidance on making claims.

A liquidator's legal duties include taking control of the company's assets, realising them for the benefit of creditors, investigating the conduct of directors, and distributing the proceeds in the statutory order. They must also report any wrongful trading or fraudulent activity to the appropriate authorities and ensure compliance with all legal requirements.

Once a company enters liquidation, trading must cease immediately, except in very limited circumstances where the liquidator continues trading to sell the business as a going concern. Directors cannot continue to trade without the liquidator's permission, as doing so may result in personal liability for debts incurred during that period.

You will need to provide the liquidator with the company's statutory books, financial records, bank statements, tax returns, and details of all assets and liabilities. You must also provide a statement of affairs, which lists the company's assets and debts, and any relevant contracts or agreements. Full cooperation is essential.

If you have personally guaranteed any company debts, such as a bank loan or lease, the creditor can pursue you for repayment after liquidation. This is a separate legal obligation and is not discharged by the company's liquidation. You should seek independent legal advice on your personal exposure before proceeding.