Expert Company Liquidatorsin Burnley

The cost varies depending on the complexity of your company's affairs, the number of creditors, and whether assets need to be realised. A licensed insolvency practitioner will provide a fixed fee quote before you commit. Typically, fees range from a few thousand pounds for a straightforward members' voluntary liquidation to more for a creditors' voluntary liquidation with substantial asset recovery.

Eligibility depends on your company's solvency status. If the company is solvent, a members' voluntary liquidation is possible, requiring a declaration of solvency. If insolvent, a creditors' voluntary liquidation is the common route, initiated by a board resolution and creditor approval. A licensed practitioner will review your financial position to determine the correct procedure.

The process begins with a board meeting where directors resolve to liquidate. A statement of affairs is prepared, listing assets and liabilities. Then, a meeting of creditors is held to approve the liquidation and appoint a liquidator. The liquidator takes control of assets, investigates prior transactions, and distributes proceeds to creditors in the statutory order.

A members' voluntary liquidation can complete in a few months, typically six to twelve months, once all assets are distributed and final accounts are filed. A creditors' voluntary liquidation may take longer, often six months to two years, depending on the complexity of asset realisation, creditor claims, and any investigations required by the liquidator.

Once a company enters liquidation, directors' powers cease, and the liquidator takes control. Trading may continue for a limited period if the liquidator decides it is beneficial for the realisation of assets, such as selling stock or completing contracts. However, you cannot make decisions without the liquidator's approval, and any trading must be for the benefit of creditors.

Alternatives include a company voluntary arrangement (CVA), which allows the company to repay debts over a period, or administration, which provides a moratorium from creditors while a restructuring or sale is attempted. Informal arrangements with creditors may also be possible. A licensed practitioner can assess which option offers the best outcome for your specific circumstances.

Employees are made redundant when the company enters liquidation, unless the liquidator retains them to assist with asset realisation. The liquidator will provide the necessary documentation for employees to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. Employees are preferential creditors, so they receive priority over unsecured creditors.

Yes, but the liquidator will examine director loan accounts and may require repayment if the loan is recoverable. If the loan was taken improperly or exceeds the company's distributable reserves, it may be treated as a distribution and subject to tax. You should seek legal advice before liquidating if you have outstanding director loans to avoid unexpected personal liabilities.

A liquidator has a duty to investigate the conduct of directors leading up to liquidation. They will review transactions, including preferences, undervalue transfers, and any evidence of wrongful trading. If misconduct is found, the liquidator can seek a court order for compensation or disqualification as a director. Honest directors who have acted reasonably have nothing to fear.

You should select a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Look for someone with experience in your industry and a clear fee structure. Personal recommendations and reviews are useful. You can also connect with a specialist listed on AccountingFirms to ensure you receive professional and regulated advice.