Professional Company LiquidatorsServing Burnham Businesses

The cost varies based on company complexity, asset values, and creditor numbers. Most practitioners charge a fixed fee for straightforward cases, often between £4,000 and £8,000. The liquidator's fee is paid from company assets, or by directors if assets are insufficient. Always request a detailed written quotation before proceeding.

Directors can initiate a creditors' voluntary liquidation if the company is insolvent. Shareholders can also pass a resolution for voluntary winding up. For compulsory liquidation, a creditor must petition the court. Eligibility depends on the company's financial position and the specific circumstances surrounding the insolvency.

A straightforward creditors' voluntary liquidation typically completes within six to twelve months. The liquidator must realise assets, investigate director conduct, and distribute funds to creditors. Complex cases with litigation or overseas assets may take several years. The timeline depends on how quickly information is provided and the cooperation of all parties involved.

Before liquidation, consider a company voluntary arrangement to repay debts over time, administration to restructure the business, or informal negotiations with creditors. Sometimes selling the business as a going concern or merging with another company preserves jobs and value. A licensed insolvency practitioner can assess which option is most suitable for your specific situation.

Employees are automatically dismissed when a liquidator is appointed. They become preferential creditors for unpaid wages, holiday pay, and pension contributions. The liquidator will provide redundancy claim forms for the government's redundancy payments service. Employees may also claim for notice pay, but this is usually an unsecured claim rather than preferential.

Once a liquidator is appointed, directors lose control of the company and cannot continue trading. However, the liquidator may continue trading for a short period to sell stock or complete existing contracts. If you wish to trade during a formal insolvency process, administration might be a better option than liquidation.

Directors must cooperate fully with the liquidator and provide accurate information. If misconduct is found, such as trading while insolvent or hiding assets, the liquidator may seek a court order for compensation or disqualification. Most honest directors who act in good faith face no personal consequences beyond the loss of their company.

Look for a licensed insolvency practitioner who is authorised by a recognised professional body. Check their experience with similar companies and ask for references. A reputable practitioner will offer a free initial consultation, provide clear fee structures, and explain all options without pressure. AccountingFirms can connect you with regulated professionals in your area.

Prepare a list of all company assets and liabilities, recent management accounts, a schedule of debtors and creditors, details of any personal guarantees, and information about company property. Also bring details of any recent transactions that may be scrutinised. Having this information ready helps the practitioner provide accurate advice quickly.

You can usually start a new business immediately after liquidation, provided you have not been disqualified. However, obtaining credit or finance may be more difficult initially. Some lenders will require personal guarantees or higher interest rates. Using a different company name that is not similar to the old one is also important to avoid confusion.