Professional Company LiquidatorsServing Portslade Businesses

The cost of liquidation varies depending on the complexity of your company's affairs, the number of creditors, and the work required to realise assets. Most licensed insolvency practitioners offer a fixed fee for a Creditors' Voluntary Liquidation, which typically ranges from £4,000 to £8,000 plus VAT. You should obtain a clear written quote before proceeding.

Any limited company that is insolvent, meaning it cannot pay its debts as they fall due, is eligible for a Creditors' Voluntary Liquidation. This includes companies with significant liabilities, those facing legal action from creditors, or those where the directors have concluded that the business cannot continue trading profitably.

The process begins with a meeting of directors to pass a resolution for voluntary liquidation. A licensed insolvency practitioner is then appointed as liquidator. The liquidator will notify creditors, realise assets, investigate the company's affairs, and distribute funds to creditors in the statutory order. The company is then dissolved after the final meeting.

A straightforward Creditors' Voluntary Liquidation typically takes between six and twelve months to complete. The exact timeline depends on the complexity of the case, the speed at which assets can be sold, and whether any legal issues arise. The liquidator will provide an estimated timeline once they have reviewed your company's circumstances.

Alternatives include a Company Voluntary Arrangement (CVA), which allows you to repay debts over a period, or administration, which may enable the business to be sold as a going concern. In some cases, a formal restructuring or a simple strike-off may be possible if the company has no significant debts. Your insolvency practitioner will advise on the best course.

Once a liquidator is appointed, they take control of the company and its assets. You cannot continue to trade in the same capacity, as the company is in the process of being wound up. However, the liquidator may allow limited trading to complete existing contracts or sell stock, but only with their explicit consent.

Employees are made redundant when the company enters liquidation. The liquidator will assist with the necessary paperwork, including issuing redundancy notices and providing information to the Redundancy Payments Service. Employees may be entitled to claim statutory redundancy pay, unpaid wages, and holiday pay from the government if the company cannot pay them.

In most cases, directors are not personally liable for company debts if they have acted properly and have not been involved in wrongful trading or fraudulent activity. However, if you have given personal guarantees for loans or credit, you may be pursued by those creditors. The liquidator will investigate your conduct and may take action if there is evidence of misconduct.

You should choose a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the ICAEW. Look for someone with experience in your industry and who offers a transparent fee structure. You can verify their licence and check for any disciplinary history before making an appointment.

You will need to provide the company's statutory records, including the register of members, directors, and charges, as well as financial records such as accounts, bank statements, and tax returns. You should also provide a list of creditors and debtors, details of any assets, and information about any contracts or leases. The liquidator will request specific documents as needed.