Professional Company LiquidatorsServing Silverdale Businesses

A licensed insolvency practitioner acts as liquidator, taking control of the company's assets, realising them for the benefit of creditors, investigating the company's affairs, and ensuring that all legal requirements are met. They also handle creditor claims and distribute any available funds according to the statutory hierarchy.

Costs vary depending on the size and complexity of the company. Typically, fees are based on the work involved, including asset realisation and legal filings. Some practitioners offer a fixed fee for straightforward cases. Always obtain a clear written quotation before proceeding.

Creditors voluntary liquidation is available to insolvent companies where directors believe the company cannot pay its debts. The directors must pass a resolution to wind up the company and convene a meeting of creditors to approve the liquidation. A licensed insolvency practitioner must be appointed as liquidator.

The initial meeting of creditors typically occurs within a few weeks of the resolution. The liquidation itself can take several months to several years, depending on the complexity of asset realisation and any investigations required. Simple cases often conclude within six to twelve months.

Alternatives include administration, which allows a company to restructure under court protection; a company voluntary arrangement, which is a formal agreement with creditors to pay debts over time; and informal arrangements such as negotiating payment plans. An insolvency practitioner can advise which option is most suitable.

Once liquidation begins, the liquidator takes control of the company's affairs, and the directors' powers cease. You cannot continue trading in the same company. However, you may be able to start a new business, subject to certain restrictions, such as not using a similar name without permission.

The liquidator's role is to collect and realise the company's assets, investigate the conduct of directors, and report to creditors. They also ensure that the winding-up process is conducted legally and that preferential creditors, such as employees, are paid before unsecured creditors.

Choose a licensed insolvency practitioner who is authorised by a recognised professional body. Look for experience with companies similar to yours, clear fee structures, and a willingness to explain the process. You can verify their credentials and ask for references from other directors.

Employees are automatically dismissed when a company enters liquidation, unless the liquidator retains them for a short period to assist with asset realisation. Employees may be able to claim redundancy pay and other entitlements from the government's redundancy payments scheme, but this is subject to eligibility.

Generally, directors are not personally liable for company debts if they have acted properly. However, liability can arise if you have given personal guarantees, traded while insolvent, or been involved in wrongful trading or fraudulent activity. A licensed practitioner can assess your exposure.