Professional Company LiquidatorsServing Chislehurst Businesses

The cost varies depending on the complexity of your company's affairs, the number of creditors, and the assets involved. For a Creditors' Voluntary Liquidation, fees typically range from £4,000 to £8,000 plus VAT, but always obtain a fixed fee quote before proceeding. A Members' Voluntary Liquidation for a solvent company usually costs less, often between £1,500 and £3,000.

Your company is insolvent if it cannot pay its debts as they fall due, its liabilities exceed its assets, or both. A licensed insolvency practitioner can assess your balance sheet and cash flow. If you are unsure, seek advice early because trading while insolvent can lead to personal liability for wrongful trading.

The process begins with a meeting of directors to pass a resolution to wind up the company. Then you must convene a creditors' meeting, giving at least 14 days' notice. Creditors vote to confirm the liquidator's appointment. The liquidator then realises assets, investigates director conduct, and distributes funds to creditors in the statutory order.

A straightforward Creditors' Voluntary Liquidation may complete in six to twelve months, but complex cases with asset realisation or legal disputes can take several years. A Members' Voluntary Liquidation for a solvent company often concludes within six months. The timeline depends on how quickly assets are sold and claims are resolved.

Once a liquidator is appointed, your powers as director cease, and the liquidator takes control of the company's affairs. You cannot continue trading unless the liquidator specifically authorises it, which is rare. If you are considering liquidation, stop taking on new credit and seek professional advice immediately to avoid wrongful trading.

Alternatives include a Company Voluntary Arrangement (CVA) to repay debts over time, administration to restructure or sell the business as a going concern, or informal negotiations with creditors. Each option has different implications for directors and creditors. A licensed insolvency practitioner can explain which route best suits your company's prospects.

Generally, no, because a company is a separate legal entity. However, personal liability can arise if you have given personal guarantees, misused funds, or traded wrongfully. The liquidator has a duty to investigate your conduct and may pursue you personally if you have breached director duties.

In a Creditors' Voluntary Liquidation, a creditors' meeting is mandatory unless all creditors waive their right to attend. For a Members' Voluntary Liquidation, no creditors' meeting is needed if the company is solvent and a statutory declaration of solvency is made. Always follow statutory procedures to avoid legal challenges.

You must provide the company's books and records, including financial statements, bank statements, debtors and creditors lists, asset details, and any relevant contracts. The liquidator also requires information about director loan accounts and any transactions with connected parties. Full disclosure is essential for a smooth process.

A Members' Voluntary Liquidation is used when a company is solvent and can pay its debts in full within twelve months. Directors must swear a statutory declaration of solvency. A Creditors' Voluntary Liquidation is for insolvent companies where creditors control the process and the liquidator investigates conduct. The costs and procedures differ significantly.