Professional Company Liquidatorsin Hackney

The cost of a creditors' voluntary liquidation typically ranges from £4,000 to £8,000 plus VAT, depending on the complexity of the case and the size of the company. A licensed insolvency practitioner will provide a fixed fee quote after reviewing your company's financial position and asset structure.

Solvent liquidation, known as a members' voluntary liquidation, is used when a company can pay all its debts in full within twelve months. Insolvent liquidation, or creditors' voluntary liquidation, applies when the company cannot pay its liabilities as they fall due and requires a licensed practitioner to manage the process.

A straightforward creditors' voluntary liquidation typically completes within six to twelve months. The initial meeting of creditors occurs within a few weeks of the decision to liquidate, but the final distribution to creditors and dissolution of the company takes longer, depending on asset realisation and claim verification.

Yes, you can still liquidate a company with no assets, but the director or a third party may need to fund the liquidation costs. The licensed insolvency practitioner will assess whether there are sufficient funds available or whether an alternative procedure such as a strike-off is more appropriate for the situation.

Employees become redundant from the date the company enters liquidation. They can claim statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund. The liquidator provides each employee with form RP1 to help them make these claims through the government's redundancy payments service.

Yes, alternatives include a company voluntary arrangement to repay debts over time, administration to allow the business to trade whilst restructuring, or a formal restructuring plan. Each option has different implications for directors and creditors, so professional advice is essential before deciding which route is most suitable.

You must cooperate fully with the liquidator, provide all company records and accounts, disclose all assets and liabilities, and answer any questions about the company's affairs. You must also attend the creditors' meeting if required and assist with the investigation into the reasons for the company's insolvency.

Yes, you can start a new company after liquidation, but there are restrictions. If you were a director of a company that went into insolvent liquidation, you may be subject to a disqualification order or undertaking. You should also consider the rules around using a similar name to the liquidated company, which require court permission in certain circumstances.

The licensed insolvency practitioner acts as the liquidator, taking control of the company's assets, realising them for the benefit of creditors, investigating the company's affairs, and reporting on the conduct of directors. They must act impartially and in accordance with insolvency legislation, ensuring that creditors receive the best possible return.

A company is technically insolvent if it cannot pay its debts as they fall due, its liabilities exceed its assets, or both. The cash flow test and the balance sheet test are the two legal tests used to determine insolvency. If you are unsure about your company's position, a licensed insolvency practitioner can help you assess it accurately.