Professional Company LiquidatorsServing Northwood Hills

A licensed liquidator takes control of the company's assets, settles outstanding debts with creditors in the correct order, and distributes any remaining funds to shareholders. They also ensure that all legal filings are completed and that the company is formally dissolved at the end of the process.

The cost varies depending on the size of the company, the number of creditors, and the complexity of the asset base. Many licensed practitioners offer a fixed fee for straightforward cases, while others charge based on time or a percentage of realisations. You should always request a written quote before proceeding.

Compulsory liquidation is ordered by a court, usually following a creditor's winding-up petition. Voluntary liquidation is initiated by the company's shareholders, either because the company is solvent (members' voluntary liquidation) or insolvent (creditors' voluntary liquidation). The process and implications differ significantly.

Once liquidation begins, the liquidator takes control of the company's affairs. Directors cannot continue trading without the liquidator's consent. In most cases, trading ceases immediately, except for actions needed to preserve asset value or complete contracts that benefit creditors.

Depending on your situation, alternatives may include a company voluntary arrangement (CVA) to repay debts over time, administration to give breathing space while restructuring, or a formal dissolution if the company is dormant. A licensed practitioner can help you assess which option is most suitable.

A straightforward creditors' voluntary liquidation might be completed within six to twelve months, but complex cases with numerous assets or disputed claims can take several years. The liquidator must also wait for the prescribed period to pass before applying to strike off the company.

Directors are generally not personally liable for company debts if they have acted within the law. However, if you have given personal guarantees, taken loans from the company, or traded while insolvent, you could be held responsible. A licensed practitioner will advise you on your specific exposure.

Employees are made redundant when the company enters liquidation, and they become preferential creditors for certain unpaid wages and holiday pay. The liquidator will guide them on making claims to the National Insurance Fund for any amounts not covered by the company's assets.

No, you do not need a solicitor to appoint a licensed insolvency practitioner. You can instruct a liquidator directly. However, if your case involves complex legal issues, such as director misconduct or disputed contracts, you may wish to seek independent legal advice in parallel.

You will need to provide the company's financial records, including bank statements, tax returns, debtor and creditor lists, and details of any assets. The liquidator will also ask for statutory books and minutes of board meetings. Full disclosure is essential to ensure a smooth process.