Expert Company Liquidators inFalkirk for Your Business

Solvent liquidation, known as a members' voluntary liquidation, is used when a company can pay its debts in full, often for restructuring or retirement. Insolvent liquidation, or creditors' voluntary liquidation, occurs when the company cannot meet its liabilities. The process and implications differ significantly, so professional advice is essential to choose the correct route.

Costs vary based on the complexity of the company's affairs, the number of creditors, and the chosen liquidation type. For a straightforward creditors' voluntary liquidation, fees may range from £4,000 to £6,000 plus VAT, but a licensed insolvency practitioner will provide a fixed fee quote after an initial assessment. Always request a detailed breakdown before engaging.

Yes, it is possible to liquidate a company with no assets, but you may need to fund the liquidation costs personally. In some cases, directors may apply for a director's loan or use personal savings to cover the fees. Alternatively, if the company is insolvent and has no assets, a creditor may petition for compulsory liquidation, but this is less common.

A creditors' voluntary liquidation typically takes between 6 and 12 months to conclude, depending on the complexity of the case and the time required to realise assets and distribute funds to creditors. A members' voluntary liquidation can be faster, often completing within 3 to 6 months, provided all statutory requirements are met promptly.

Directors must cooperate fully with the liquidator, provide accurate financial records, and avoid preferential treatment of any creditor. They must also refrain from wrongful trading—continuing to trade while knowing the company is insolvent—and ensure that all information about the company's affairs is disclosed. Failure to comply can result in personal liability or disqualification.

No, once a liquidator is appointed, their control over the company ceases. The liquidator takes charge of realising assets, settling debts, and winding up the company. You cannot continue trading, sign contracts, or make financial decisions without the liquidator's approval. Any unauthorised trading could lead to personal liability for new debts incurred.

Alternatives include a company voluntary arrangement (CVA), which allows you to repay debts over time while continuing to trade, or administration, which provides a moratorium from creditors while restructuring. If the business is viable but facing temporary difficulties, a CVA or informal arrangement with creditors may be more suitable than liquidation.

Look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Check their experience with similar cases, read client testimonials, and ensure they offer a free initial consultation. A local practitioner will understand regional business conditions and have established relationships with local creditors.

Employees are entitled to claim unpaid wages, holiday pay, and redundancy pay from the National Insurance Fund, but the liquidator will guide them through the process. The liquidator must also notify employees of the liquidation and provide them with a claim form. Employees become preferential creditors for certain amounts, but they may not recover all monies owed.

If a company has been struck off the register, it is no longer legally active. You cannot liquidate it directly, but you may apply for restoration to the register if you need to recover assets or deal with outstanding claims. Once restored, you can then proceed with liquidation. Seek professional advice to navigate this complex process.