Professional Company LiquidatorsGuidance Across Skipton

A licensed insolvency practitioner is appointed to manage the closure of a company. Their role involves realising assets, agreeing claims with creditors, investigating the company's affairs, and distributing any funds available. They also ensure that all legal requirements are fulfilled and the company is formally dissolved at the end of the process.

The cost of liquidation varies depending on the complexity of the case, the size of the company, and the amount of work required. Fees are typically based on the time spent or a fixed fee agreed at the outset. You should always obtain a clear quote from a licensed professional before proceeding.

Solvent liquidation, often called a Members' Voluntary Liquidation, is used when a company can pay its debts in full. Insolvent liquidation, or Creditors' Voluntary Liquidation, is used when the company cannot pay its liabilities. The procedures, paperwork, and implications for directors are very different in each case.

The length of the process can vary. A straightforward Creditors' Voluntary Liquidation may take around six to twelve months to complete, depending on how quickly assets can be sold and any legal matters resolved. A solvent liquidation can often be concluded more quickly if the affairs are in order.

Once a decision has been made to place the company into liquidation, you must cease trading immediately, except in very specific circumstances where the liquidator agrees it is beneficial. Continuing to trade and incurring further credit after you know the company is insolvent can lead to personal liability for wrongful trading.

A Company Voluntary Arrangement, or CVA, is a formal agreement with creditors to pay off debts over a set period, usually from future profits. It allows the company to continue trading whilst repaying a portion of what is owed. A licensed insolvency practitioner supervises the arrangement and ensures that the terms are adhered to.

If you have provided a personal guarantee for a business loan or overdraft, the lender could seek to recover the debt from you personally, which might put your home at risk. However, liquidation itself does not directly affect your personal assets. It is essential to take advice on any personal guarantees you have signed.

You have a duty to cooperate fully with the liquidator. This includes providing all company records, accounts, and information about the assets and liabilities. You must also attend meetings if required and answer questions about the company's affairs. Failing to cooperate can result in personal penalties or even disqualification.

Yes, there are alternatives. A CVA can help restructure debts, and administration can provide a moratorium from creditor action, allowing time for a rescue. You could also consider a formal restructuring plan or negotiating directly with creditors. A licensed professional can assess your specific circumstances to see which option is viable.

You should always appoint a licensed insolvency practitioner, who is regulated by a recognised professional body. Look for someone with experience in your sector and a track record of handling similar cases. You can also seek a recommendation from your accountant or other professional advisors.