Professional Company LiquidatorsServing Sissinghurst

The cost of a liquidation varies depending on the complexity of the company's affairs. A simple, solvent closure will cost less than an insolvent liquidation with many creditors. You should obtain a fixed fee quote from a licensed insolvency practitioner. They will assess the work involved before providing a price, so you know the cost upfront.

Any limited company can be liquidated, whether it is solvent or insolvent. For a solvent liquidation, the directors must make a statutory declaration of solvency. For an insolvent liquidation, the company must be unable to pay its debts as they fall due. A licensed professional can help you determine the correct procedure based on your financial position.

The process begins with an initial consultation to review your financial position. If liquidation is the right course, the shareholders will pass a resolution to wind up the company. For a creditors' voluntary liquidation, a meeting of creditors is held to confirm the appointment. The liquidator then takes control of the company's assets and affairs.

The length of the process depends on the complexity of the case. A straightforward solvent liquidation can be completed in several months. An insolvent liquidation may take longer, especially if there are assets to sell or legal issues to resolve. Your liquidator will provide a timeline estimate at the start of the process.

Yes, there are several alternatives to liquidation. A Company Voluntary Arrangement (CVA) allows a company to repay debts over a period of time. Administration can provide protection from creditors while a business is restructured. Sometimes, a simple negotiation with creditors to extend payment terms can resolve the immediate issue. A professional can advise on which option is most suitable.

When a company enters liquidation, all employees are automatically made redundant. The liquidator will handle the necessary paperwork and claims. Employees may be able to claim certain payments from the National Insurance Fund, including arrears of wages, holiday pay, and redundancy pay. The liquidator will provide the necessary forms and guidance to affected staff.

Directors are generally not personally liable for company debts, as a limited company is a separate legal entity. However, personal liability can arise if a director has given a personal guarantee, or if they have acted wrongfully or fraudulently. This includes trading whilst insolvent and not taking proper account of creditor interests.

A liquidator is a licensed insolvency professional whose role is to collect and realise the company's assets, investigate its affairs, and distribute the proceeds to creditors in a statutory order. They also have a duty to report any director misconduct to the relevant authorities. Their primary function is to act in the interests of the company's creditors.

You will need to provide the company's statutory books, including the register of members and directors. You should also provide all financial records, such as bank statements, management accounts, and tax returns. A list of all creditors and debtors is essential. The liquidator will also require details of any company assets, including property, equipment, and intellectual property.

Yes, in most cases you will be able to start a new company after a liquidation. However, there are restrictions. If you have been a director of a company that has gone into insolvent liquidation, you may be subject to restrictions on the use of a similar company name for a period of five years. You should seek professional advice to understand these rules fully.