Expert Company LiquidatorsServing Bude Cornwall

The cost varies depending on the complexity of the liquidation, the number of creditors, and the assets involved. A simple solvent liquidation may cost less than an insolvent one. You should request a fixed-fee quote from a licensed practitioner, which will include statutory advertising, meeting costs, and disbursements.

A company is insolvent if it cannot pay its debts as they fall due, its liabilities exceed its assets, or it fails a statutory demand. A licensed insolvency practitioner can review your financial position and confirm whether you meet the legal test for insolvency, and then advise on the appropriate procedure.

The process begins with a meeting of shareholders or a court application, depending on the type of liquidation. For a creditors' voluntary liquidation, the directors must convene a board meeting and then call a shareholder meeting to pass a resolution. The creditors' meeting is then held within 14 days to confirm the appointment.

The duration depends on the complexity of the case. A simple solvent liquidation can be completed in as little as six to nine months, whereas an insolvent liquidation may take a year or longer if there are complex asset recoveries, investigations, or disputes with creditors. Your liquidator will provide a realistic timeline.

Once a liquidator is appointed, the directors' powers cease, and the liquidator takes control of the company's affairs. You cannot continue trading in the normal sense, but the liquidator may allow limited trading to complete contracts or sell stock. You must not incur new credit without the liquidator's consent.

Alternatives include a company voluntary arrangement (CVA), which allows you to repay debts over time, or administration, which may rescue the business as a going concern. If the company is solvent, a members' voluntary liquidation or a strike-off may be simpler. A licensed practitioner can explain which option suits your circumstances.

Employees are made redundant when a liquidator is appointed, unless the liquidator retains them temporarily to assist with asset realisation. They may be entitled to redundancy pay, notice pay, and holiday pay, which can be claimed from the National Insurance Fund. The liquidator will provide the necessary forms and guidance.

In most cases, directors are not personally liable for company debts, but there are exceptions. If you have given personal guarantees, signed a director's loan account, or been involved in wrongful trading or fraudulent activity, you could be pursued personally. A licensed practitioner will assess any potential exposure.

You will need to provide the company's statutory books, financial records, bank statements, tax returns, asset registers, and details of any outstanding debts. The liquidator will also require a statement of affairs, which lists all assets and liabilities, and you must cooperate fully with their investigations.

Look for a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association. You can check their credentials, read client testimonials, and ask for a clear fee structure. A good liquidator will offer a free initial consultation and explain the process transparently.