Professional Company LiquidatorsGuidance Across Kenilworth

A licensed insolvency practitioner takes control of the company, realises its assets, investigates the directors' conduct, and distributes any proceeds to creditors. They also handle the legal formalities of striking the company off the register and ensure that all statutory requirements are fulfilled correctly.

Costs vary depending on the size and complexity of the company, but most fixed-fee packages start from around £3,000 plus VAT. This fee is paid from company assets, or by the director if assets are insufficient. Always obtain a written quote before engaging a liquidator.

Any insolvent company with debts it cannot pay can enter creditors' voluntary liquidation, provided the directors make a statutory declaration of solvency or insolvency as appropriate. A licensed practitioner will confirm eligibility during a free initial consultation and explain the full process.

A straightforward creditors' voluntary liquidation typically takes between six and twelve months to conclude, depending on asset realisation and creditor claims. Complex cases with legal disputes or overseas assets can take longer. The liquidator provides a timeline estimate after the first meeting of creditors.

Alternatives include a company voluntary arrangement to repay debts over time, administration to rescue the business as a going concern, or simply negotiating payment plans with creditors informally. A licensed practitioner can assess which route best suits your circumstances and explain the implications of each.

No, once a liquidator is appointed, the directors lose control of the company and trading must cease immediately. The liquidator may continue trading for a short period to sell stock or complete contracts, but only with the approval of the creditors' committee or the court.

Directors must cooperate fully with the liquidator, provide all company books and records, and disclose any transactions that occurred before liquidation. They must also attend meetings if required and answer questions about their conduct. Failure to cooperate can result in personal liability or disqualification.

Generally, directors are not personally liable for company debts unless they have given personal guarantees, traded wrongfully, or acted fraudulently. The liquidator will investigate the conduct of directors and may pursue recovery of funds if any misfeasance is identified.

Look for a licensed insolvency practitioner who is regulated by a recognised professional body and has experience with companies similar to yours. Check their credentials, read client testimonials, and ensure they offer a fixed fee with no hidden charges. Speak with several practitioners before making a decision.

Employees are made redundant on the date the liquidator is appointed, unless the liquidator retains them to assist with asset realisation. They may claim statutory redundancy pay, notice pay, and holiday pay from the National Insurance Fund, and the liquidator will provide the necessary claims forms.