Professional Company LiquidatorsGuidance in Sevenoaks

The cost varies depending on the complexity of the liquidation, the size of the company, and the number of creditors. For a straightforward creditors' voluntary liquidation, fees may be based on a fixed quote or calculated on a time basis. You should always request a written breakdown of anticipated costs before agreeing to proceed.

Yes, it is possible to liquidate an insolvent company with no assets. This is often referred to as a 'no asset liquidation'. Creditors may be contacted by the liquidator, but if there are no funds to distribute, the process will focus on concluding the company's affairs and applying for dissolution.

A creditors' voluntary liquidation is used for insolvent companies where creditors will not be paid in full. A members' voluntary liquidation is used for solvent companies where directors can make a statutory declaration of solvency. The process and the liquidator's duties differ significantly depending on which route is appropriate.

The duration depends on the complexity of the case. A simple members' voluntary liquidation might conclude within six to nine months. A creditors' voluntary liquidation can take longer, particularly if there are complex asset realisations, legal claims, or investigations into director conduct. Your liquidator will provide a realistic timeline at the outset.

When a company enters liquidation, employees are automatically dismissed from the date of the winding-up order or resolution. The liquidator will provide the necessary documentation for employees to make claims for redundancy pay, unpaid wages, and holiday pay through the relevant government scheme. The liquidator will also deal with preferential claims from employees.

No. Once a liquidator is appointed, the directors' powers cease. The liquidator takes control of the company's assets and affairs. However, the liquidator may continue trading for a short period if this is necessary to achieve a better realisation of assets or to complete work in progress, but this is done by the liquidator, not the directors.

Yes. Alternatives include a company voluntary arrangement, which is a formal agreement with creditors to pay debts over a period of time, or administration, which aims to rescue the company as a going concern. A licensed insolvency practitioner can assess your financial position and advise on which option is most suitable for your circumstances.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose all assets and liabilities. You must not dispose of any company assets without permission. You also have a duty to consider the interests of creditors from the point at which insolvency becomes likely, rather than only at the formal start of liquidation.

Generally, no. Limited liability protects directors from personal liability for company debts. However, personal liability can arise if you have given a personal guarantee, traded whilst knowingly insolvent, or acted in breach of your fiduciary duties. The liquidator may pursue claims against directors in certain circumstances, so it is important to seek professional advice early.

You should select a licensed insolvency practitioner who is regulated by a recognised professional body. Check their credentials and experience with companies of a similar size and sector. Speak with them directly to assess their communication style and ensure they provide clear, transparent advice about fees and the process before you instruct them.