Professional Company LiquidatorsServing Rotherham Businesses

The cost of liquidation varies depending on the size and complexity of your company. Creditors' voluntary liquidation is often funded by the company's assets, while a director may need to contribute for a members' voluntary liquidation. Always obtain a fixed fee quote from a licensed practitioner before proceeding.

A company is insolvent if it cannot pay its debts as they fall due, or if its liabilities exceed its assets. You may also face statutory demands or winding-up petitions from creditors. A licensed insolvency practitioner can assess your financial position and confirm whether formal insolvency is necessary.

The process typically begins with a meeting of directors to pass a resolution for liquidation. Then, creditors are notified and a meeting is held to confirm the appointment of a liquidator. The liquidator takes control of assets, realises them, and distributes funds to creditors in the statutory order.

The duration depends on the complexity of the case. A straightforward creditors' voluntary liquidation may conclude within six to twelve months, while cases with asset realisation or legal issues can take longer. The liquidator will provide an estimated timeline after reviewing your company's records.

Once liquidation begins, directors lose control of the company. The liquidator takes over to wind down affairs. Trading is generally not permitted except to complete contracts that benefit creditors. If you wish to continue trading, alternative options like administration or a company voluntary arrangement may be more suitable.

Alternatives include a company voluntary arrangement (CVA) to restructure debts, administration to protect the business from creditors, or informal negotiations with creditors. For solvent companies, striking off or a members' voluntary liquidation might be appropriate. A licensed practitioner can explain which option fits your circumstances.

Employees are made redundant when liquidation occurs. They become preferential creditors for unpaid wages, holiday pay, and pension contributions, up to statutory limits. The liquidator will handle claims and guide employees on claiming from the National Insurance Fund for any shortfalls.

Yes, but the liquidator must ensure that asset sales are conducted at market value and in the interests of creditors. You may need to provide evidence of funding and justify the transaction. This process is subject to scrutiny to prevent unfair advantage over other buyers.

Directors must avoid wrongful trading, which means continuing to trade when they know the company cannot avoid insolvency. They must act in the interests of creditors, maintain accurate records, and cooperate with the liquidator. Failure to fulfil these duties can lead to personal liability or disqualification.

Look for a licensed insolvency practitioner who is authorised by a recognised professional body, such as the Insolvency Practitioners Association. Check their experience with similar cases, read client testimonials, and ensure they provide clear fee structures. Speak with several practitioners to compare approaches before making a decision.