Professional Company LiquidatorsServing Beckenham Kent

A licensed insolvency practitioner takes control of the company, realises its assets, agrees claims with creditors, and distributes any funds in the correct statutory order. Once the process is complete, the company is formally dissolved and removed from the register.

Costs vary based on complexity, asset value, and creditor numbers. A licensed professional will provide a clear fee structure before you commit. Creditors' voluntary liquidation fees are often paid from company assets, whilst a director may need to fund a members' voluntary liquidation if there are sufficient assets.

A creditors' voluntary liquidation is used when a company is insolvent and cannot pay its debts. A members' voluntary liquidation is used when a company is solvent and directors wish to close it. The latter requires a declaration of solvency, and both processes require a licensed insolvency practitioner to act.

The process usually takes between six and twelve months, depending on the complexity of the case. Simple cases with few assets and creditors can conclude quicker, whilst those with disputes or complex asset sales may take longer. Your liquidator will provide a realistic timeline at the outset.

Once a liquidator is appointed, their control is absolute. You cannot continue trading without their consent. Before formal appointment, you can trade, but you must not worsen creditor positions. Wrongful trading can lead to personal liability, so seek professional advice immediately if you are concerned.

Employees are usually made redundant when a liquidator is appointed. They may be able to claim statutory redundancy payments from the National Insurance Fund. The liquidator will provide the necessary forms and guidance, ensuring employees understand their rights and how to claim what they are owed.

Yes, there are alternatives. A company voluntary arrangement (CVA) can restructure debts, or administration can give a business breathing space. Sometimes a sale of the business as a going concern is possible. A licensed professional will assess your situation and advise on the most suitable option.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that occurred before the liquidation. Failure to cooperate can lead to personal liability or disqualification. Understanding your duties is essential to avoid potential penalties.

In some circumstances, yes. If you have given a personal guarantee, you will be liable. Also, if you have traded wrongfully or fraudulently, a court can make you personally responsible for some debts. Professional advice is crucial to understand and mitigate these risks.

You should always instruct a licensed insolvency practitioner who is regulated by a recognised professional body. You can verify their licence and check their experience with companies of your size and sector. A good liquidator will be transparent about costs and communicate clearly throughout the process.