Expert Company LiquidatorsServing Gorebridge Businesses

A licensed insolvency practitioner acts as the liquidator. They manage the orderly winding down of your company, selling assets, settling creditor claims, and investigating the company's affairs. They ensure the process complies with insolvency law and that all parties are treated fairly.

Costs vary based on the complexity of your case, the size of the company, and the number of creditors. A liquidator's fees are typically paid from the company's assets. If there are no assets, creditors may agree to fund the process, but this must be discussed upfront.

Compulsory liquidation is ordered by a court, usually after a creditor petitions for winding up. Voluntary liquidation is initiated by the company's directors or shareholders. Creditors' voluntary liquidation (CVL) is the most common form for insolvent companies, where shareholders pass a resolution to wind up.

Once liquidation begins, the liquidator takes control of the company. You cannot continue trading in the normal sense. However, the liquidator may allow limited trading to complete contracts or sell stock. Any trading after the decision to liquidate must be handled carefully to avoid personal liability.

A simple creditors' voluntary liquidation may complete in six to twelve months. Complex cases with asset sales, legal disputes, or investigations can take several years. The liquidator must file final accounts with the relevant authorities, which adds time to the process.

Alternatives include a company voluntary arrangement (CVA), administration, or a formal restructuring plan. In some cases, a simple strike-off may be possible if the company is solvent. A licensed insolvency practitioner can assess your situation and recommend the most suitable option.

If your company cannot pay its debts as they fall due, you have a legal duty to act in the interests of creditors. Continuing to trade while insolvent can lead to personal liability for wrongful trading. Liquidation is one option, but you should seek professional advice promptly.

Employees are made redundant when the company ceases trading. The liquidator will assist with claims for unpaid wages, holiday pay, and redundancy entitlements through the government's insolvency payment scheme. Employees must be given proper notice and their rights must be respected throughout the process.

Generally, directors are not personally liable for company debts. However, personal liability can arise if you have given personal guarantees, acted fraudulently, or traded wrongfully. The liquidator may pursue directors for recovery of funds if they have breached their duties.

Look for a licensed insolvency practitioner with experience in your industry and a transparent fee structure. Check their credentials and ask for references. You should also ensure they are authorised by a recognised professional body and that they communicate clearly throughout the process.