Professional Company Liquidators inCounty Durham for Expert Advice

A company liquidator is a licensed insolvency practitioner who takes control of a company that is being wound up. They realise assets, agree claims with creditors, investigate the directors' conduct, and distribute any available funds in the statutory order. Once the process is complete, the company is formally dissolved.

The cost varies depending on the complexity of the case, the size of the company, and the number of assets. Typically, fees are based on time spent or a percentage of realisations. In some cases, the company's assets cover the fees, but if not, directors may need to fund the process personally.

Creditors' voluntary liquidation is initiated by the directors and shareholders, who pass a resolution to wind up the company. Compulsory liquidation is a court order, usually obtained by a creditor who is owed more than £750. The process is different, but the outcome is similar: the company is wound up.

A simple creditors' voluntary liquidation can take around six to twelve months to complete. More complex cases, especially those with substantial assets or legal issues, can take several years. The liquidator must also deal with HMRC, investigate director conduct, and finalise all claims before dissolution.

If your company is insolvent, continuing to trade can lead to personal liability for wrongful trading. You must seek professional advice immediately. A licensed insolvency practitioner can help you decide whether to trade out of difficulty, enter a formal arrangement, or cease trading and liquidate.

Directors have a legal duty to cooperate with the liquidator. You must provide all company records, accounts, and information about assets and liabilities. You may also be asked to complete a questionnaire about the company's affairs. Failure to cooperate can lead to personal liability or disqualification.

Yes, alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring. A CVA allows you to repay debts over time while continuing to trade. Administration provides a moratorium from creditors, giving the company breathing space to restructure or sell the business as a going concern.

Employees are made redundant when the company enters liquidation. The liquidator will help them claim statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund. The liquidator also provides a form (RP1) which employees need to make a claim.

Generally, directors are not personally liable for company debts, but there are exceptions. If you have given a personal guarantee, signed a director's loan, or acted wrongfully, you may be held liable. The liquidator can also seek contributions from directors who have misused company funds or traded wrongfully.

You should choose a licensed insolvency practitioner who is regulated by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Look for experience, transparent fees, and a clear communication style. You can also check the individual's licence and any disciplinary history.