Professional Company LiquidatorsServing Madeley with Care

A company liquidator is a licensed insolvency practitioner who manages the closure of a company. They take control of assets, sell them to repay creditors, investigate the company's affairs, and ensure legal compliance. They also handle creditor communications and final reporting.

Costs vary based on the complexity of the case, the size of the company, and the number of creditors. Typically, fees are taken from the company's assets, but if there are insufficient assets, a director may need to fund the process. Always obtain a fixed fee quote upfront.

You are eligible if your company is insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. A licensed liquidator will assess your financial position and confirm whether a Creditors' Voluntary Liquidation is appropriate.

The process typically takes between six and twelve months, depending on the complexity of the case. Simple cases with few assets and creditors may conclude sooner, while those with legal disputes or asset realisation challenges can take longer.

Alternatives include a Company Voluntary Arrangement (CVA), administration, or informal restructuring. A CVA allows you to repay debts over time while continuing to trade. Administration provides protection from creditors while a rescue plan is attempted. Discuss options with a professional.

Once a liquidator is appointed, they take control of the company and trading ceases. However, in some cases, the liquidator may continue trading for a short period to sell assets or complete contracts. You cannot continue trading as a director without the liquidator's consent.

Employees are made redundant when liquidation begins, unless the liquidator retains them temporarily to assist with asset sales. Employees may claim redundancy pay and unpaid wages from the government's Insolvency Service, but the liquidator will provide guidance on the claims process.

No, you do not need to attend court for a Creditors' Voluntary Liquidation. The process is initiated by a board resolution and shareholder approval, followed by a creditors' meeting. The liquidator is then appointed. Court involvement is only required for compulsory liquidation.

If you have given personal guarantees for company debts, those creditors can pursue your personal assets. Otherwise, limited liability generally protects your personal finances. However, if wrongful trading or fraudulent activity is found, personal liability may arise.

Look for a licensed insolvency practitioner who is a member of a recognised professional body, such as the IPA or ACCA. Seek recommendations, compare fixed fees, and ensure they have experience with companies similar to yours. A local professional can offer face-to-face meetings.