Professional Company LiquidatorsServing Kentisbeare Businesses

The cost of a creditors' voluntary liquidation (CVL) usually ranges from £4,000 to £8,000, plus a percentage of the realisable assets. Fees depend on the complexity of your company's affairs, the number of creditors, and the work required to sell assets. Always obtain a fixed-fee quote from a licensed insolvency practitioner before proceeding.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, can enter liquidation. This includes both trading and non-trading companies. A licensed insolvency practitioner will assess your company's financial position to confirm whether liquidation is appropriate or if an alternative rescue procedure might be more suitable.

A creditors' voluntary liquidation typically completes within 12 to 18 months, depending on the complexity of realising assets and dealing with creditor claims. The initial meeting of creditors is held within a few weeks of the decision to liquidate. Simple cases with few assets may conclude more quickly.

Alternatives include a company voluntary arrangement (CVA), administration, or informal negotiation with creditors through a payment plan. Each option has different implications for the company's future and director liabilities. A licensed insolvency practitioner can explain the pros and cons of each route, helping you choose the most appropriate solution.

Once a company enters liquidation, the liquidator takes control of the business and its assets. Directors cannot continue trading in the company's name, except in very limited circumstances where the liquidator may allow trading to sell stock or complete contracts. Any trading after the decision to liquidate must be carefully managed to avoid personal liability.

Employees are automatically made redundant when a company enters liquidation, unless the liquidator retains them to assist with winding down. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, which is a government scheme that protects employees' basic entitlements when their employer becomes insolvent.

In most cases, directors are not personally liable for company debts, as limited liability protects them. However, personal liability can arise if you have given personal guarantees, acted fraudulently, or traded wrongfully. The liquidator will investigate your conduct and may pursue you personally if there is evidence of misfeasance or other wrongful actions.

Choose a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Look for someone with experience in your industry, transparent fee structures, and a clear communication style. You can verify a practitioner's licence and check for any disciplinary history before instructing them.

You will need to provide the company's statutory records, including the register of members, minutes of meetings, and share certificates. You must also supply full financial accounts, bank statements, tax returns, and details of all assets and liabilities. The liquidator will require a statement of affairs, which lists what the company owns and owes, prepared with your assistance.

Yes, a company with no assets can still be liquidated, but the process may be funded by the directors or through a contribution from the company's creditors. In some cases, a creditor may petition for a compulsory liquidation if they are owed money, but this is less common. A licensed insolvency practitioner will advise on the most cost-effective route.