Expert Company LiquidatorsServing Norton Businesses

The cost varies based on company size and complexity, but for a straightforward creditor voluntary liquidation, fees often start around £4,000 plus VAT and disbursements. The liquidator's fee is usually paid from company assets, but if assets are insufficient, directors may need to fund the process personally.

Once creditors approve the liquidation at a meeting, the liquidator is appointed immediately. The process of realising assets, investigating affairs, and distributing funds typically takes six to twelve months. However, the company ceases trading immediately upon appointment, and the liquidator's investigation may extend the timeline.

Creditors' voluntary liquidation (CVL) is initiated by the directors when they conclude the company is insolvent. Compulsory liquidation is a court order, usually petitioned by a creditor. CVL is more common and gives directors more control, whereas compulsory liquidation involves court proceedings and a different liquidator appointment process.

Yes, it is possible to liquidate a company with no assets, but you may need to fund the liquidator's fees personally. Some insolvency practitioners offer a 'no asset' liquidation service for a fixed fee. Alternatively, you might consider striking off the company if it has not traded recently, but this is not suitable if debts exist.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to restructure the business, or a formal restructuring plan. For smaller companies, a time-to-pay arrangement with HMRC or a formal repayment plan with creditors might be possible. A licensed insolvency practitioner can advise which option best suits your circumstances.

Look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Check their experience with similar cases, read client reviews, and ensure they offer a free initial consultation. You can also verify their licence status on the professional body's website.

Employees are made redundant immediately upon liquidation, but they may be entitled to claim statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the National Insurance Fund. The liquidator provides employees with the necessary forms (RP1, RP2, and RP3) to make claims. They are also preferential creditors for certain amounts.

No, once a company enters liquidation, it ceases to trade. The liquidator takes control of the company's affairs, and you cannot continue to use the company's bank account or enter into new contracts. If you wish to continue in business, you may start a new company, but you must not use the same or a similar name for a period of time without court permission.

Directors must avoid wrongful trading, which means continuing to trade when they know the company cannot avoid insolvency. They must act in the interests of creditors, not shareholders, and they must not make preferential payments to certain creditors. Breaching these duties can lead to personal liability for company debts and disqualification as a director.

Once liquidation is complete, the company is dissolved, and directors are released from most liabilities, except for personal guarantees or debts arising from fraud or wrongful trading. However, the liquidator can pursue claims against directors for up to six years after the company's dissolution, so it is important to act properly throughout the process.