Professional Company LiquidatorsServing Lancaster Businesses

The cost varies depending on the complexity of the company's affairs, the number of creditors, and the assets involved. A licensed liquidator will provide a fixed fee quote based on a thorough assessment. You should always obtain a clear breakdown of fees and disbursements before agreeing to proceed with any formal appointment.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, is eligible for a Creditors' Voluntary Liquidation. A solvent company can also be wound up voluntarily, but this is a different process. A licensed professional will confirm your eligibility and recommend the correct procedure based on your financial position.

The process begins with a meeting of directors to pass a resolution. A licensed insolvency practitioner is then formally appointed during a meeting of shareholders. The liquidator takes control of the company's assets, notifies creditors, and begins the process of realising assets and distributing funds in the correct statutory order.

The duration depends on the complexity of the case. A straightforward liquidation with few assets and no disputes can be completed in a matter of months. Cases with complex asset structures, ongoing litigation, or investigations can take significantly longer. Your liquidator will provide an estimated timeline at the outset.

Yes, alternatives include a Company Voluntary Arrangement (CVA) to repay debts over time, administration to protect the business from creditors, or a formal restructuring. A licensed professional can analyse your business plan and financial forecasts to determine if a rescue option is viable and in the best interests of creditors.

The liquidator is responsible for the employees. They will assess the company's financial position to determine if there are funds to pay wages. If the company is insolvent, employees may be entitled to claim certain payments from the National Insurance Fund, such as redundancy pay and unpaid wages, up to statutory limits.

In most cases, no. The primary benefit of a limited company is that the directors are not personally liable for debts that cannot be paid. However, personal liability can arise if you have given a personal guarantee, or if you have acted fraudulently or wrongfully. A professional will advise on your specific exposure.

Yes, it is possible to liquidate an insolvent company with no assets. This is often referred to as a 'no-asset liquidation'. The process is still important to conclude the company's affairs properly and to enable the director to be released from their duties. The liquidator's fees may be paid from a director's contribution or from funds held by a third party.

Continuing to trade whilst insolvent can lead to personal liability for wrongful trading. Directors also risk being disqualified from acting as a director for a period. Creditors may take legal action to recover their debts, which could lead to a compulsory winding-up order being made by the court, removing control from the directors.

You should prepare a detailed list of the company's assets and liabilities, including a list of creditors and any secured debts. You should also gather the latest management accounts, a list of any employees, and details of any company property or vehicles. Having this information ready will help the professional provide accurate advice efficiently.