Professional Company LiquidatorsServing Portishead Businesses

The cost of liquidation varies depending on the complexity of your company's affairs, the number of creditors, and the value of assets. Typically, fees are paid from the company's assets, but if assets are insufficient, creditors may fund the process. A licensed practitioner will provide a clear fee structure before you commit.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, is eligible for creditors' voluntary liquidation. Directors must pass a resolution and appoint a licensed insolvency practitioner to act as liquidator. The company must have sufficient funds or creditor agreement to cover the liquidation costs.

The length of time depends on the complexity of the case. A straightforward creditors' voluntary liquidation may complete within six to twelve months, but if there are complex asset recoveries or investigations, it can take longer. Your liquidator will provide an estimated timeline at the outset.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to protect the business while restructuring, or informal negotiations with creditors. A licensed insolvency practitioner can assess your financial position and recommend the most suitable option, which may allow the business to continue trading.

In liquidation, the liquidator takes control of company assets to distribute to creditors. You cannot keep company assets unless you purchase them from the liquidator at market value. Personal assets are generally unaffected unless you have given personal guarantees or engaged in wrongful trading.

Directors must cooperate with the liquidator, provide all company records and financial information, and refrain from disposing of assets without consent. They must also avoid preferential treatment of certain creditors and continue to act in the best interests of all creditors. Failure to comply can lead to personal liability.

Insolvency is defined by the inability to pay debts as they fall due, or when liabilities exceed assets. Signs include cash flow problems, creditor pressure, statutory demands, or winding-up petitions. A licensed insolvency practitioner can review your financial position and confirm whether formal insolvency proceedings are necessary.

The liquidator's role is to realise the company's assets, investigate the directors' conduct, settle creditor claims, and distribute any remaining funds in the statutory order. They also ensure that the company is dissolved properly. Their duty is to all creditors, not to the directors.

Generally, directors are not personally liable for company debts, but exceptions exist. If you have given personal guarantees, entered into wrongful trading, or made preferential payments, you may be held personally liable. A licensed practitioner can advise on your specific exposure.

You will need to provide up-to-date financial statements, a list of creditors and amounts owed, details of any assets, and a statement of affairs. You must also provide company records, including statutory books and bank statements. The liquidator will use this information to conduct the liquidation.