Company Liquidators inGalashiels

A company liquidator is a licensed insolvency practitioner who takes control of a company that is being wound up. They sell any remaining assets, agree claims from creditors, and distribute any funds according to legal priority. They also investigate the conduct of directors and report to the relevant authorities if necessary.

The cost of liquidation varies depending on the size and complexity of the company. Typically, fees are based on the work involved, often calculated on an hourly rate or a percentage of realisations. You should always ask for a clear fee structure before instructing a professional, and ensure you understand what is included.

You can continue to trade while you are assessing your options, but you must act in the best interests of creditors. If you continue to incur debts that you cannot pay, you risk personal liability for wrongful trading. It is advisable to seek professional advice as soon as you suspect insolvency.

Voluntary liquidation is initiated by the directors or shareholders, usually through a members' voluntary liquidation if the company is solvent, or a creditors' voluntary liquidation if it is insolvent. Compulsory liquidation is ordered by a court, often following a winding-up petition from a creditor. The process and implications differ significantly.

The length of time varies, but a typical creditors' voluntary liquidation can take between six and twelve months to complete. This includes the initial meeting, the realisation of assets, the agreement of creditors' claims, and the final distribution. More complex cases, especially those involving investigations, can take longer.

Yes, there are alternatives such as a company voluntary arrangement (CVA), administration, or informal arrangements with creditors. A CVA allows you to repay debts over a period while continuing to trade. Administration provides a moratorium from creditors while a restructuring is attempted. Your liquidator will discuss which option is suitable.

When a company goes into liquidation, employees are made redundant. They may be entitled to claim certain payments from the National Insurance Fund, such as arrears of wages, holiday pay, and redundancy pay. The liquidator will provide the necessary documentation to help employees make these claims.

In most cases, directors are not personally liable for company debts, but there are exceptions. If you have given a personal guarantee, you will be liable for that debt. You could also be liable if you have traded wrongfully or fraudulently, or if you have misused company funds. Professional advice is essential to understand your exposure.

You will need to provide the company's financial records, including accounts, bank statements, tax returns, and details of assets and liabilities. You should also provide a list of creditors and any relevant contracts. The liquidator will require full cooperation to fulfil their statutory duties.

You should choose a licensed insolvency practitioner who is experienced in your type of business and who you feel comfortable working with. Look for a professional who is transparent about fees, communicates clearly, and is regulated by a recognised professional body. A local firm can offer face-to-face meetings.