Professional Company LiquidatorsServing Laddingford

Solvent liquidation, known as members' voluntary liquidation, is used when a company can pay its debts and wishes to close. Insolvent liquidation, or creditors' voluntary liquidation, applies when debts cannot be paid. Each process has different legal requirements and implications for directors.

The cost varies based on the complexity of your company's affairs, the number of creditors, and the time required to wind down operations. We provide transparent fee structures and will give you a clear quotation before any work begins, so you can budget effectively.

Typically, a creditors' voluntary liquidation takes between six and twelve months to complete, depending on the size of the company and the ease of realising assets. Simpler cases may conclude sooner, while those with complex asset sales or legal issues may take longer.

Yes, it is possible to liquidate a company with no assets, but you will need to fund the liquidator's fees personally. If there are no assets and no funds, you may consider a strike-off instead, but this does not provide the same protection from creditor claims.

Alternatives include a company voluntary arrangement to repay debts over time, administration to restructure the business, or informal negotiations with creditors. Each option has distinct advantages and drawbacks, and the right choice depends on your company's specific financial position and future prospects.

Directors are generally not personally liable for company debts if they have acted properly. However, if you have given personal guarantees, or if there is evidence of wrongful trading or fraudulent activity, you could be held responsible. Taking advice early helps protect your position.

Employees are made redundant when the company enters liquidation. They may be entitled to claim redundancy pay and other statutory entitlements from the National Insurance Fund. The liquidator will provide the necessary documentation to help employees make their claims.

Once liquidation begins, directors lose control and the liquidator takes over. However, before liquidation, you may continue trading if you do so responsibly and without increasing creditor losses. It is crucial to seek professional advice before making any decisions about trading.

You will need to provide the company's financial records, including accounts, bank statements, tax returns, and details of assets and liabilities. The liquidator will also require a statement of affairs, which lists what the company owns and owes, to assess the financial position.

Choose a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association. Look for someone with experience in your industry and a clear approach to communication. You can verify their credentials and check their regulatory status before engaging them.