Professional Company LiquidatorsServing Hood Road

A licensed insolvency practitioner takes control of the company, realises its assets, and distributes the proceeds to creditors in a strict legal order. They also investigate the conduct of directors and ensure that all statutory obligations are fulfilled before the company is formally dissolved.

The cost depends on the complexity of the case, the size of the company, and the number of creditors involved. A fixed fee is often agreed at the outset for straightforward insolvent liquidations, whereas a time-based fee may be used for more complex matters. Always request a written quote.

Yes, you can. This is often called a creditors' voluntary liquidation with no assets. The liquidator's fee is typically paid by the director or a connected party, because there are no funds available within the company to cover the costs. Speak with a professional about the most cost-effective route.

A solvent liquidation, known as a members' voluntary liquidation, is used when the company can pay its debts in full within twelve months. An insolvent liquidation, or creditors' voluntary liquidation, is used when the company cannot pay its liabilities as they fall due. The process and the duties of the liquidator differ significantly between the two.

A straightforward creditors' voluntary liquidation can often be completed within six to twelve months, depending on the speed with which assets are sold and claims are adjudicated. Complex cases with litigation or overseas assets can take several years to conclude fully.

Employees are automatically dismissed once a liquidator is appointed. They may be able to claim certain arrears of wages, holiday pay, and redundancy pay from the National Insurance Fund, which is a government scheme. The liquidator will provide the necessary forms to help employees make their claims.

Yes, there are several alternatives. A company voluntary arrangement allows you to repay debts over a period of time, whilst a formal restructuring or a sale of the business as a going concern might preserve jobs and value. Administration is another option if there is a viable business to rescue.

In most cases, limited liability protects your personal assets. However, if you have given a personal guarantee to a lender or landlord, you will be liable for that debt. Furthermore, if you have traded whilst insolvent and worsened the position of creditors, you could face a claim for wrongful trading.

A creditors' meeting is held to confirm the appointment of the liquidator and to receive a report on the company's affairs. Creditors can vote on who should be appointed and can also ask questions about the conduct of the directors. The meeting is usually held within a few weeks of the resolution to liquidate.

You will need to provide the company's books and records, including ledgers, bank statements, sales and purchase invoices, and details of any assets and liabilities. You must also complete a statement of affairs, which lists what the company owns and owes. Full cooperation is a legal requirement.