Professional Company LiquidatorsServing Market Deeping

A licensed insolvency practitioner takes control of the company, realises its assets, settles debts in the correct legal order, and distributes any remaining funds to creditors. They also investigate the conduct of directors and report to the relevant authorities if necessary, ensuring the process is transparent and compliant with insolvency law.

The cost varies depending on the size and complexity of the company, the number of creditors, and the amount of work involved. Typically, fees are based on time spent or a percentage of assets realised. You should always ask for a clear fee structure in writing before proceeding, and compare quotes from different licensed practitioners.

A director, shareholder, or creditor can apply to place a company into liquidation. The most common route is a members' voluntary liquidation for solvent companies, or a creditors' voluntary liquidation when the company is insolvent. A court can also order a compulsory liquidation following a petition from a creditor.

A simple creditors' voluntary liquidation may take between six and twelve months to complete, but complex cases with substantial assets or disputes can take longer. The liquidator must file final accounts and notify Companies House, and the process concludes with the company being struck off the register. Timescales depend on how quickly assets are sold and claims are resolved.

Once a liquidator is appointed, directors lose control of the company. The liquidator may continue trading for a short period to sell stock or complete contracts, but only in the best interests of creditors. You cannot trade as normal after liquidation has commenced, so you should seek advice before taking any steps.

Liquidation is the formal winding up of a company, leading to its dissolution. Administration is a rescue procedure that aims to save the business as a going concern, often through a company voluntary arrangement or a sale of the business. Administration gives the company a moratorium from creditor action, whereas liquidation does not.

Generally, directors are not personally liable for company debts if they have acted properly and within the law. However, personal liability can arise if you have given personal guarantees, traded while insolvent (wrongful trading), or acted fraudulently. A liquidator will examine your conduct and may pursue you personally if they find grounds.

Employees are automatically made redundant when a company goes into liquidation, unless the liquidator retains them to assist with the process. They become preferential creditors for unpaid wages and holiday pay, up to certain limits. The liquidator will handle redundancy claims and guide employees on making claims to the National Insurance Fund.

Yes, it is possible to liquidate a company with no assets, but the process may be funded by directors or creditors. A licensed insolvency practitioner will assess whether there are sufficient funds to cover their fees. If not, you may need to consider an alternative such as a strike-off, but this does not deal with debts properly and may leave creditors able to object.

Yes, alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to rescue the business, or a formal restructuring. For solvent companies, a members' voluntary liquidation is an option. You should always explore these alternatives with a licensed professional, as liquidation may not be the most suitable outcome for your situation.