Professional Company Liquidatorsin Bicester

The cost of a Creditors' Voluntary Liquidation (CVL) generally ranges from £3,000 to £7,000 plus VAT, depending on the complexity of your company's affairs. The liquidator's fee is usually paid from company assets, but if assets are insufficient, directors may need to fund the process personally. Always obtain a fixed fee quote before proceeding.

Your company is eligible for a Creditors' Voluntary Liquidation if it is insolvent, meaning it cannot pay its debts as they fall due. This includes situations where liabilities exceed assets. A licensed insolvency practitioner will assess your company's financial position and confirm whether liquidation is the appropriate solution or if an alternative such as a company voluntary arrangement might be more suitable.

The process begins with a meeting of directors to pass a resolution for liquidation. Then, a meeting of creditors is held, where the proposed liquidator is formally appointed. The liquidator takes control of the company's assets, realises them, and distributes the proceeds to creditors. The company ceases trading immediately upon the appointment.

The entire liquidation process typically takes between 6 and 12 months, depending on the complexity of the company's affairs. Simple cases with few assets and straightforward creditor claims may be completed in as little as 4 months. More complex cases involving legal disputes or asset realisation can take longer, sometimes exceeding a year.

Alternatives include a Company Voluntary Arrangement (CVA), which allows you to repay debts over a period of time while continuing to trade. Administration is another option, providing a moratorium from creditors while a restructuring is attempted. For solvent companies, a Members' Voluntary Liquidation (MVL) is used to close the company and distribute assets tax-efficiently. Each option has different implications.

Directors must cooperate fully with the liquidator, provide all relevant company records and financial information, and refrain from any actions that could be considered fraudulent or wrongful trading. You must also disclose any preferences given to certain creditors and any transactions at an undervalue. Failure to comply can result in personal liability and disqualification.

Yes, it is possible to liquidate a company with no assets, but creditors must be notified and the liquidation will be funded by directors or other parties. The liquidator will investigate the company's affairs and may pursue claims against directors if wrongful trading or other misconduct is found. This is often referred to as a 'no asset liquidation' and still requires a formal process.

Generally, no. Once the company is liquidated, its debts are written off, and directors are not personally responsible for them unless they have given personal guarantees or have acted improperly. However, if you have personally guaranteed a business loan or lease, the creditor can pursue you for the outstanding amount. The liquidator will advise on your specific situation.

Employees are made redundant when the company enters liquidation. They may be entitled to claim statutory redundancy pay, unpaid wages, holiday pay, and other arrears from the National Insurance Fund. The liquidator will provide the necessary forms and guidance. Employees who are owed money are considered preferential creditors and are paid before unsecured creditors.

You should choose a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Look for someone with experience in your industry and who offers a fixed fee for the service. Check reviews and ask for references. The liquidator must be independent and act in the interests of all creditors.