Professional Company LiquidatorsServing Totton Businesses

The cost varies depending on the complexity of your company's affairs. A simple Creditors' Voluntary Liquidation (CVL) may have a fixed fee, whilst a complex case with multiple assets or litigation will cost more. You should always request a detailed quote from a licensed insolvency practitioner before proceeding.

Directors of a company that is insolvent are eligible to propose a Creditors' Voluntary Liquidation. If the company is solvent but has fulfilled its purpose, a Members' Voluntary Liquidation may be appropriate. In some cases, a creditor can petition the court for a compulsory liquidation.

A Creditors' Voluntary Liquidation typically takes between six and twelve months to complete, depending on the complexity of the asset realisation and the level of creditor claims. A Members' Voluntary Liquidation can often be concluded more quickly, sometimes within three to four months, if all matters are straightforward.

Before liquidation, you might consider a Company Voluntary Arrangement (CVA) to repay debts over time, or a formal administration process if there is a viable business to sell. You may also negotiate directly with creditors for a time-to-pay arrangement. A licensed professional will help you assess which option is realistic for your company.

A liquidator acts as an agent of the company and must act in the best interests of all creditors. Their duties include realising assets, investigating director conduct, distributing funds to creditors in the correct statutory order, and reporting any potential wrongful trading or misfeasance to the relevant authorities.

Generally, you will not be personally liable for company debts if you have acted properly and have not traded whilst insolvent. However, if you have given personal guarantees or have been involved in wrongful trading, fraudulent trading, or misfeasance, you could be held personally liable for some or all of the debts.

Once a liquidator is appointed, their control over the company begins. You cannot continue trading in the normal course of business. The liquidator may continue trading for a short period to complete work in progress or to sell the business as a going concern, but this is done under their authority, not yours.

You will need to provide the company's books and records, including bank statements, sales and purchase ledgers, debtors and creditors lists, asset registers, and details of any company property. You must also provide a statement of affairs showing the company's financial position as at the date of liquidation.

The liquidator will write to all known creditors to inform them of the liquidation and their right to submit a claim. A meeting of creditors may be held to approve the liquidator's appointment, or a deemed consent procedure may be used. Creditors are also kept informed of progress through regular reports.

The liquidator takes control of all company assets. They will arrange for assets to be valued and then sold, typically by auction or private sale, to raise funds for distribution to creditors. Assets that are subject to a fixed charge, such as a mortgage on property, will be dealt with separately by the charge holder.