Professional Company LiquidatorsServing Godalming Businesses

A licensed insolvency practitioner takes control of the company, realises its assets, agrees claims with creditors, and distributes any funds according to legal priority. They also investigate the directors' conduct and report to the relevant authorities, ensuring the company is struck off the register properly.

Costs vary depending on the complexity of the case, but typical fees range from £4,000 to £8,000 plus VAT and disbursements. The liquidator's fee is paid from the company's assets, not from your personal pocket, provided there are sufficient funds. If assets are minimal, creditors may fund the process.

Yes, you can place an insolvent company into creditors' voluntary liquidation even if it has no assets. The liquidator will still need to investigate the company's affairs and report to creditors. In some cases, directors may need to contribute personally if they have taken loans or made unlawful payments.

Voluntary liquidation is initiated by the directors and shareholders, who pass a resolution to wind up the company. Compulsory liquidation is forced by a creditor through a court order, often after a winding-up petition. Most solvent or insolvent companies opt for voluntary liquidation to maintain control over the process.

A straightforward creditors' voluntary liquidation typically completes within six to twelve months, depending on the complexity of asset realisation and creditor claims. Compulsory liquidation can take longer due to court proceedings. Your liquidator will provide a timeline based on your specific circumstances.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to give breathing space while restructuring, or informal negotiation with creditors. Each option has different implications for directors and creditors. A licensed professional can advise which route is most suitable for your situation.

Generally, directors are not personally liable for company debts if they have acted properly. However, personal liability can arise if you have given personal guarantees, traded wrongfully, or misused company funds. The liquidator will examine your conduct and may pursue recovery if they find evidence of misconduct.

Once a liquidator is appointed, they take control of the company, and you lose your authority to trade. Before that, you may continue trading if you are not insolvent, but you must not incur further credit that you cannot repay. Trading while insolvent can lead to personal liability for wrongful trading.

Employees are made redundant when the liquidator is appointed, unless they are retained to help with winding down. They may claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide each employee with a claim form and explain their rights.

Look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Check their experience with your type of business and ensure they offer a transparent fee structure. You can verify their licence and disciplinary record online.