Expert Company Liquidatorsin Chelsea

The cost of liquidation depends on the complexity of your company's affairs. Creditors' voluntary liquidation fees typically range from £4,000 to £8,000 plus VAT, while a members' voluntary liquidation may cost less. A licensed practitioner will provide a fixed fee quote after an initial review.

Any limited company that is insolvent can enter creditors' voluntary liquidation if it cannot pay its debts. For solvent companies, a members' voluntary liquidation is available if the directors can make a statutory declaration of solvency. Your accountant or insolvency practitioner can confirm eligibility.

A creditors' voluntary liquidation typically takes between six and twelve months to complete, depending on the realisation of assets and the complexity of claims. A members' voluntary liquidation can be faster, often completed in three to six months if all matters are straightforward.

Yes, you can liquidate a company with no assets, but you must consider the costs. Creditors' voluntary liquidation is still possible, and the practitioner's fees are paid from any available funds or by the directors personally. Alternatively, a compulsory liquidation may be initiated by creditors, but this is less common.

Alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to give breathing space, or a formal restructuring plan. For solvent companies, striking off is a cheaper option, but it does not distribute assets or formally close the company. A professional can assess which is best.

Directors must cooperate with the liquidator, provide all company records, and not dispose of assets without permission. They must also avoid wrongful trading and preferential payments. Failure to comply can lead to personal liability, disqualification, or even criminal prosecution.

Once a liquidation order is made, directors lose control of the company, and trading must cease. However, the liquidator may continue trading for a short period to sell assets or complete contracts. Before liquidation, you can trade normally, but you must not incur further debts if you know the company is insolvent.

Generally, directors are not personally liable for company debts if they have acted properly. However, personal liability can arise if you have given personal guarantees, taken unlawful dividends, or engaged in fraudulent or wrongful trading. A licensed practitioner can advise on your specific exposure.

Employees are made redundant when a company goes into liquidation. They may be entitled to statutory redundancy pay, unpaid wages, holiday pay, and pension contributions. The liquidator will guide them on claiming from the National Insurance Fund, and they will be treated as preferential creditors for certain claims.

The liquidator takes control of all company assets, including cash, property, equipment, and intellectual property. They will sell these assets to generate funds for creditors. Secured creditors are paid first, then preferential creditors, and finally unsecured creditors, with any surplus distributed to shareholders.