Expert Company LiquidatorsServing Bonnybridge

A licensed insolvency practitioner acts as the liquidator, taking control of the company’s assets, realising them for creditors, investigating the company’s affairs, and distributing any funds according to legal priority. They also ensure statutory duties are fulfilled and report to creditors and Companies House.

The cost depends on the size and complexity of the company, the number of creditors, and the assets involved. For a simple creditors’ voluntary liquidation, fees typically range from a few thousand pounds. Always obtain a fixed-fee quote from a licensed practitioner before proceeding.

A creditors’ voluntary liquidation is initiated by the directors and shareholders when the company is insolvent. A compulsory liquidation is forced by a court order, usually after a creditor petitions for winding up. The process and control differ significantly, so professional advice is essential.

Yes, you can still place an insolvent company into liquidation even if it has no assets. This is sometimes called a ‘no asset liquidation’. The practitioner will handle the statutory duties and closure, but you may need to fund the costs personally if the company cannot pay.

A straightforward creditors’ voluntary liquidation typically completes within six to twelve months, depending on asset realisation and creditor claims. Complex cases with litigation or overseas assets can take longer. Your liquidator will provide a timeline estimate after the initial review.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring. A CVA allows you to repay debts over time while trading continues. Administration gives breathing space from creditors. A licensed practitioner can assess which option best protects your business and stakeholders.

Generally, directors are not personally liable for company debts, but exceptions exist. If you have given personal guarantees, signed a director’s loan, or acted wrongfully, you could be pursued. A liquidator will investigate and advise on any potential personal liability.

You can continue trading if there is a reasonable prospect of recovery, but you must not trade wrongfully. Continuing to incur credit when you know the company cannot pay can lead to personal liability. Seek advice immediately if you are unsure about your position.

Employees are made redundant when a company enters liquidation, unless a buyer is found for the business. They can claim statutory redundancy pay, notice pay, and unpaid wages from the National Insurance Fund. The liquidator provides the necessary documentation for these claims.

Look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Check their experience with similar companies, ask for a clear fee structure, and ensure they are independent. You can also verify their status on the public register.