Professional Company LiquidatorsServing Radstock Businesses

The cost varies depending on the size and complexity of the company's affairs. Creditors' voluntary liquidation is often funded from the company's assets. A licensed insolvency practitioner will provide a fixed fee quotation after an initial assessment, so you know the exact cost before proceeding.

A director or shareholder can propose a creditors' voluntary liquidation if the company is insolvent. Alternatively, a creditor can petition the court for compulsory liquidation. Eligibility depends on the company's financial position and the specific grounds for winding up the business.

A creditors' voluntary liquidation typically concludes within six to twelve months, depending on the complexity of realising assets and dealing with creditor claims. A compulsory liquidation may take longer due to court procedures. Your practitioner will provide a realistic timeline after the initial review.

Alternatives include a company voluntary arrangement to repay debts over time, administration to protect the business from creditors while restructuring, or informal arrangements with creditors. A licensed professional can assess whether any of these options could rescue the business or achieve a better return for creditors.

The process begins with a board meeting to pass a resolution for winding up. A statement of affairs is prepared, and a meeting of creditors is held to confirm the appointment of the liquidator. The liquidator then takes control of assets, investigates affairs, and distributes funds to creditors.

You can continue trading during the preparation phase, but you must not incur further credit that you cannot repay. Trading whilst insolvent without reasonable prospect of recovery can lead to personal liability for wrongful trading. Seek professional advice immediately to avoid this risk.

Directors must cooperate fully with the liquidator, provide accurate information about the company's affairs, and deliver all books and records. You must not conceal assets or destroy documents. Failure to comply with these duties can result in personal liability, disqualification, or even criminal proceedings.

Employees are automatically dismissed when a liquidator is appointed. They become preferential creditors for unpaid wages and holiday pay, and they may be able to claim certain payments from the National Insurance Fund. The liquidator will provide the necessary forms to help employees make these claims.

Generally, limited liability protects directors from personal liability for company debts. However, if you have given personal guarantees, signed a director's loan account, or acted wrongfully, you may be pursued personally. The liquidator will investigate your conduct and can take action if there is evidence of misconduct.

You should select a licensed insolvency practitioner who is regulated by a recognised professional body and has experience with companies of your size and sector. Look for someone who communicates clearly, offers a transparent fee structure, and provides a practical approach to resolving your financial difficulties.