Find Trusted Company LiquidatorsAcross Co Durham

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They take control of assets, settle creditor claims, investigate the company's affairs, and ensure that any surplus is distributed correctly. They also handle legal formalities and ensure the company is struck off the register.

Costs vary depending on the size and complexity of the company. A simple creditors' voluntary liquidation may start from around £4,000 plus VAT, but larger or more complex cases cost more. Always ask for a fixed fee quote before instructing a practitioner, and ensure there are no hidden charges.

A liquidator can be appointed by the company's directors, shareholders, or by a court order. In a creditors' voluntary liquidation, shareholders pass a resolution and then creditors confirm the appointment. In a compulsory liquidation, the court appoints the official receiver or an insolvency practitioner.

A straightforward creditors' voluntary liquidation often completes within six to twelve months. Complex cases with many assets or legal disputes can take longer. The liquidator must file final accounts and notify Companies House, after which the company is formally dissolved.

A Creditors' Voluntary Liquidation (CVL) is used when a company is insolvent and cannot pay its debts. A Members' Voluntary Liquidation (MVL) is for solvent companies where shareholders wish to close the business and distribute surplus assets. Each process has different legal requirements and tax implications.

Yes, but you must still follow the correct legal process. If the company has no assets to cover liquidation costs, directors may need to fund the process personally. Alternatively, a company may be struck off the register if it meets certain conditions, but this does not discharge directors' responsibilities.

Employees are made redundant when a company goes into liquidation. They may be entitled to redundancy pay, notice pay, and holiday pay, which can be claimed from the National Insurance Fund if the company cannot pay. The liquidator will provide the necessary documentation to employees.

Yes, alternatives include a Company Voluntary Arrangement (CVA), administration, or informal restructuring. A CVA allows a company to repay debts over time while continuing to trade. Administration gives a company protection from creditors while a rescue plan is attempted. Each option has distinct advantages and should be considered with professional advice.

Wrongful trading occurs when a director continues to trade while knowing the company cannot avoid insolvency, and this results increased losses for creditors. To avoid this, you must seek professional advice early, keep accurate financial records, and act in the best interests of creditors once insolvency is inevitable.

Yes, unless you are disqualified by a court order. In some cases, the liquidator may report misconduct to the Insolvency Service, which can lead to a disqualification order lasting between two and fifteen years. If you act honestly and cooperate fully, you are unlikely to face disqualification.