Professional Company LiquidatorsServing Kettering Businesses

The cost varies depending on the complexity of the company's affairs, the number of creditors, and the value of assets. A licensed insolvency practitioner will provide a fixed fee quote after an initial assessment. Creditors' voluntary liquidation often costs more than a simple strike-off, but you should always obtain a written breakdown before proceeding.

A company is insolvent if it cannot pay its debts as they fall due, or if its liabilities exceed its assets. Signs include creditor demands, county court judgments, bounced cheques, and pressure from HMRC. If you are unsure, a licensed insolvency practitioner can review your financial position and advise whether formal insolvency proceedings are necessary.

The process typically starts with a board meeting where directors resolve to call a creditors' meeting. A licensed insolvency practitioner is then appointed as liquidator, either by shareholder resolution (for members' voluntary liquidation) or by creditor approval (for creditors' voluntary liquidation). The liquidator takes control of assets, investigates affairs, and distributes proceeds to creditors.

A straightforward creditors' voluntary liquidation can be completed within six to twelve months, depending on the complexity of realising assets and resolving creditor claims. If there are legal disputes, missing records, or complex asset structures, it may take longer. The liquidator will provide a timeline based on your specific circumstances.

Once liquidation begins, the liquidator takes control of the company, and directors lose their powers to trade. However, in some cases, the liquidator may continue trading for a short period to maximise asset value or complete contracts. You must not trade while insolvent without professional advice, as this could lead to personal liability for wrongful trading.

Alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring with creditors. A CVA allows the company to continue trading while repaying debts over a period, whereas administration provides a moratorium from creditor action. A licensed insolvency practitioner can assess whether any of these options are viable for your business.

Generally, directors are not personally liable for company debts if they have acted properly and not given personal guarantees. However, if you have given a personal guarantee, the creditor can pursue you personally. Additionally, if you have traded wrongfully or fraudulently, a court may order you to contribute to company assets.

Employees are automatically made redundant when a company enters liquidation. They may be entitled to claim redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund. The liquidator will provide employees with the necessary forms and guidance on making claims, ensuring they understand their statutory rights.

Yes, it is possible to liquidate a company with no assets, but the costs of liquidation must be covered. If the company has no assets to pay for the liquidation, directors may need to fund it personally. In some cases, a creditor may fund the process if they believe there are grounds for investigation or recovery of assets.

You must provide the liquidator with the company's accounting records, bank statements, tax returns, details of assets and liabilities, and a statement of affairs. This includes a list of creditors and amounts owed. You should also provide details of any directors' loans, transactions with connected parties, and any potential claims against third parties.