Professional Company LiquidatorsServing Glengormley Businesses

Costs vary depending on the complexity of your company's affairs, the number of creditors, and whether it is a solvent or insolvent liquidation. Creditors' voluntary liquidation is often funded from company assets, while compulsory liquidation may involve court fees. A licensed insolvency practitioner will provide a clear fee structure before you proceed.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, may be eligible for creditors' voluntary liquidation. Alternatively, a solvent company can undergo members' voluntary liquidation if it can pay all debts within twelve months. A licensed practitioner will assess your balance sheet and cash flow to confirm eligibility.

The process begins with a board meeting where directors resolve to wind up the company. Creditors are then notified, and a meeting is held to nominate a licensed insolvency practitioner. The practitioner takes control of assets, investigates the company's affairs, and distributes proceeds to creditors in the statutory order.

A straightforward creditors' voluntary liquidation typically takes between six and twelve months to complete, depending on the complexity of asset realisation and creditor claims. Compulsory liquidations may take longer due to court involvement. Your liquidator will provide a timeline based on your specific circumstances.

Alternatives include a company voluntary arrangement, which allows you to repay debts over time, or formal restructuring through administration. Sometimes a simple strike-off is possible if the company has no assets or debts. A licensed insolvency practitioner can explain the pros and cons of each option in relation to your situation.

Once liquidation begins, directors lose control of the company, and the liquidator takes over. However, in the lead-up to a creditors' voluntary liquidation, directors can continue trading if it does not worsen the position of creditors. Trading while insolvent without professional advice could lead to personal liability for wrongful trading.

Employees are made redundant when liquidation is confirmed. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, which is a government scheme. The liquidator will provide employees with the necessary forms and guidance on making claims.

In most cases, directors are not personally liable for company debts if they have acted properly and not traded wrongfully. However, personal liability may arise if there has been fraudulent trading, wrongful trading, or misuse of the company's assets. A licensed practitioner will investigate and advise on any potential issues.

If a company has been struck off the register but still has assets or debts, it may be possible to restore it to the register and then proceed with liquidation. This requires a court order in some cases. A licensed insolvency practitioner can guide you through the restoration process and subsequent liquidation steps.

You will need to provide the company's financial records, including bank statements, accounts, tax returns, and details of assets and liabilities. Additionally, you should provide a list of creditors and any relevant contracts or agreements. The liquidator will request this information to assess the company's financial position and proceed with the liquidation.