Professional Company LiquidatorsServing East Anglia

The cost of a creditors' voluntary liquidation (CVL) varies depending on the complexity of your company's affairs, the number of creditors, and the work required to realise assets. Most licensed insolvency practitioners will provide a fixed fee quote after an initial assessment, so you know the cost upfront before committing.

A company is insolvent if it cannot pay its debts as they fall due, its liabilities exceed its assets, or a statutory demand has been served. If you are unsure, a licensed insolvency practitioner can review your financial position and confirm whether you meet the legal test for insolvency.

The process begins with a meeting of directors to pass a resolution for voluntary liquidation. Then, a meeting of shareholders is held to approve the appointment of a licensed insolvency practitioner as liquidator. The liquidator then takes control of the company's affairs, realises assets, and distributes funds to creditors.

The length of the process depends on the complexity of the case. A straightforward liquidation might be concluded within six to twelve months, but cases involving complex asset realisation or legal disputes can take longer. Your liquidator will provide a realistic timeline after the initial review.

Once the decision to liquidate has been made, you should not continue trading unless it is to preserve the value of the company's assets or to complete contracts that are beneficial to creditors. Trading while insolvent without proper justification could lead to personal liability for wrongful trading.

Depending on your circumstances, alternatives may include a company voluntary arrangement (CVA) to repay debts over time, administration to rescue the business as a going concern, or an informal arrangement with creditors. A licensed professional can help you assess which option is most suitable for your situation.

When a company enters liquidation, all employees are automatically dismissed. Employees may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, but the liquidator will provide guidance on the claims process and the priority of payments.

In most cases, directors are not personally liable for company debts if they have acted properly. However, if you have given personal guarantees, or if there has been wrongful trading, fraudulent trading, or a breach of fiduciary duty, you could be held personally responsible. Professional advice is essential.

You will need to provide the company's financial records, including accounts, bank statements, tax returns, and details of assets and liabilities. The liquidator will also require a statement of affairs, which lists all creditors and the amounts owed. Full disclosure is required to fulfil your legal obligations.

You should choose a licensed insolvency practitioner who is experienced in dealing with companies similar to yours and who is authorised by a recognised professional body. It is important to speak with a few practitioners to compare their approach and fees, and to ensure you feel comfortable with their advice.