Expert Company LiquidatorsServing Canterbury Businesses

The cost of liquidation varies based on the complexity of the company's affairs, the number of creditors, and the value of assets. A licensed insolvency practitioner will provide a fixed fee quote after an initial assessment. You should always request a written breakdown of fees before agreeing to proceed.

A company is insolvent if it cannot pay its debts as they fall due, or if its liabilities exceed its assets. Indicators include persistent creditor pressure, statutory demands, or bounced payments. A licensed practitioner can assess your financial position and confirm whether formal insolvency proceedings are necessary.

The process typically begins with a meeting of directors to pass a resolution for voluntary liquidation. A licensed insolvency practitioner is then appointed as liquidator. They will take control of the company's assets, notify creditors, and manage the distribution of funds according to legal priorities.

The duration depends on the complexity of the case. A straightforward creditors' voluntary liquidation may conclude within six to twelve months. However, if there are complex asset realisations or legal disputes, the process can take longer. Your liquidator will provide an estimated timeline at the outset.

Yes, alternatives include company voluntary arrangements, administration, or informal restructuring. These options may allow the business to continue trading or achieve a better return for creditors. A licensed insolvency practitioner will explain the pros and cons of each based on your specific circumstances.

Generally, all company assets are sold to repay creditors. However, you may be able to purchase assets from the liquidator if you make an offer that is in the best interests of creditors. This is subject to approval and must be at market value.

Employees are made redundant when a company enters liquidation. The liquidator will assist with the necessary paperwork, including issuing redundancy notices and providing information about claiming statutory redundancy payments from the National Insurance Fund. Employees are preferential creditors for certain unpaid wages.

In most cases, no court attendance is required for a creditors' voluntary liquidation. However, if a compulsory liquidation is initiated by a creditor via a winding-up petition, then court hearings may be necessary. Your insolvency practitioner will guide you through the process.

Directors must cooperate fully with the liquidator. If you have acted honestly and fulfilled your duties, there are usually no personal consequences. However, if there is evidence of wrongful trading, fraudulent activity, or breach of fiduciary duty, you could be held personally liable or face disqualification.

Choose a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association. Look for someone with experience in your industry and a transparent fee structure. You can connect with a specialist listed on AccountingFirms to ensure you receive professional guidance.