Professional Company LiquidatorsServing Brierley Businesses

The cost of a creditors' voluntary liquidation is usually based on the complexity of the case and the assets available. Many licensed professionals will work on a fixed fee basis once they have reviewed your financial records. It is important to obtain a clear written quote before you proceed with any appointment.

Your company is legally insolvent if it cannot pay its debts as they fall due, or if its liabilities exceed its assets. Common indicators include persistent creditor pressure, statutory demands, or a negative balance sheet. A licensed insolvency practitioner can assess your financial position and confirm whether formal insolvency is necessary.

To appoint a liquidator, the directors must convene a board meeting and then call a shareholder meeting to pass a special resolution for voluntary winding up. The creditors must also be notified and given the opportunity to vote on the nominated liquidator. This process is usually managed by the insolvency practitioner.

The duration of a compulsory liquidation can vary significantly depending on the complexity of the company's affairs. A straightforward case with no assets might be closed within a few months, whilst a case with complex investigations or legal disputes could remain open for several years before the liquidator is discharged.

You can continue to trade while you are exploring options, but you must not incur further credit if you know the company is insolvent. Doing so could lead to a claim of wrongful trading against you personally. It is advisable to seek professional advice immediately to protect your position.

Yes, alternatives include a company voluntary arrangement to reschedule debts, a formal restructuring plan, or negotiating a time-to-pay agreement with creditors. Selling the business as a going concern may also be possible. Your insolvency practitioner will explain which option is most suitable for your situation.

When a company enters liquidation, all employees are automatically dismissed from the date the winding-up order is made or the resolution is passed. The liquidator will assist employees with claiming any redundancy pay and unpaid wages from the National Insurance Fund. The liquidator will provide the necessary forms and information.

Generally, no. The limited liability structure protects directors from personal liability for company debts. However, if you have given a personal guarantee for a business loan or overdraft, the lender can pursue you for that debt. Personal liability can also arise if you have acted fraudulently or traded wrongfully.

You should choose a licensed insolvency practitioner who is a member of a recognised professional body. It is wise to speak with more than one professional to compare their approach and fees. Look for someone who communicates clearly and has experience dealing with companies of a similar size and sector.

You will need to provide the liquidator with the company's statutory books, financial records, and details of all assets and liabilities. This includes bank statements, debtor and creditor lists, and any lease or hire purchase agreements. The liquidator will also require details of any company property held by directors.