Expert Company LiquidatorsServing Prestwick Businesses

The cost of liquidation varies based on the size and complexity of your company's affairs. Creditors' voluntary liquidation often has a fixed fee, but additional costs may arise for asset realisation or legal work. You should request a detailed quote from a licensed practitioner, who will explain all fees upfront before you commit.

Your company is eligible for liquidation if it is insolvent, meaning it cannot pay its debts as they fall due, or if its liabilities exceed its assets. Even solvent companies can opt for members' voluntary liquidation to close down. A licensed insolvency practitioner will assess your balance sheet and cash flow to confirm eligibility.

The process begins with a meeting of directors to pass a resolution for liquidation. Then, you must convene a meeting of shareholders to approve the winding-up petition. A licensed insolvency practitioner is appointed as liquidator, who then takes control of the company's assets, notifies creditors, and distributes proceeds according to statutory priorities.

The duration depends on the complexity of the case. A straightforward creditors' voluntary liquidation can often be completed within six to twelve months, while cases involving asset sales, legal disputes, or investigations may take longer. Your liquidator will provide a realistic timeline after reviewing your company's records and circumstances.

Yes, alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to allow trading while a rescue plan is sought, or informal negotiations with creditors. Each option has different implications for your business and personal liabilities. A licensed practitioner can explain the pros and cons of each approach before you decide.

When a company enters liquidation, employees are made redundant. They may be entitled to claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary documentation and guidance to help employees submit their claims promptly.

Once a resolution to wind up is passed, the company must cease trading, except in limited circumstances where the liquidator deems it beneficial for the winding-up. Continuing to trade after insolvency could lead to personal liability for wrongful trading. You should seek immediate advice from a licensed practitioner before making any further commitments.

Generally, directors are not personally liable for company debts if they have acted in good faith and fulfilled their duties. However, personal liability may arise if you have given personal guarantees, engaged in wrongful trading, or misapplied company assets. A licensed insolvency practitioner will investigate and advise on your specific situation.

You will need to provide the company's financial records, including bank statements, ledgers, tax returns, and details of assets and liabilities. You should also disclose any transactions with directors or connected parties. The liquidator will request a statement of affairs to assess the financial position and plan the liquidation process.

Look for a licensed insolvency practitioner who is regulated by a recognised professional body. Check their experience with similar cases and their approach to communication. You can connect with a specialist listed on AccountingFirms, who will offer a free initial consultation to discuss your needs and provide transparent fee information.