Company Liquidators inPlymouth, Speak With Specialists

A licensed liquidator takes control of the company, realises its assets, and distributes proceeds to creditors. They investigate the company's affairs, report to creditors, and ensure the process complies with insolvency law. They also handle employee claims and statutory filings.

The cost varies depending on the complexity of the case, asset values, and the number of creditors. A simple, solvent liquidation may cost less than an insolvent one. You should request a fixed fee quote from a licensed professional before proceeding.

You are eligible if your company is insolvent, meaning it cannot pay its debts as they fall due. A licensed insolvency practitioner will assess your financial position and confirm whether a CVL is appropriate. They will also check for any restrictions or prior insolvencies.

The initial meeting and appointment can happen within a few weeks. The full process, including asset realisation and final distribution, often takes between six and twelve months. Complex cases with disputes or overseas assets may take longer.

Once the decision to liquidate is made, directors should stop trading except to preserve asset value or complete essential contracts. Continuing to trade while insolvent can lead to personal liability for wrongful trading. Always seek advice before placing orders or taking on new credit.

Alternatives include a Company Voluntary Arrangement (CVA), administration, or informal restructuring. A CVA allows you to pay debts over time whilst continuing to trade. Administration provides a moratorium from creditors and may allow a business rescue. Your adviser can explain which option suits your circumstances.

Employees are made redundant on the date of liquidation. They may claim statutory redundancy pay, notice pay, and unpaid wages from the National Insurance Fund. The liquidator provides them with the necessary forms and guidance to make these claims.

Generally, no, because a limited company is a separate legal entity. However, you may be liable if you have given personal guarantees or if you have acted wrongfully, fraudulently, or traded whilst insolvent. The liquidator will investigate your conduct and may seek recovery if necessary.

Directors can propose a CVL, which requires a shareholder resolution and a meeting of creditors. The creditors' meeting is usually held within 14 days of the resolution. It is not possible to bypass the creditors' meeting entirely, as they must approve the liquidator's appointment.

You will need to provide the company's books and records, including bank statements, ledgers, invoices, and tax returns. You must also provide details of assets and liabilities, a list of creditors, and any relevant contracts. The liquidator will request a statement of affairs.