Professional Company Liquidators inTrafford for Insolvency Support

A company liquidator takes control of an insolvent company, realises its assets, and distributes the proceeds to creditors according to legal priority. They investigate the directors' conduct, deal with claims, and ensure the company is formally dissolved at the end of the process, providing a clean exit.

The cost varies depending on the complexity of the case, the number of creditors, and the asset structure. Typically, fees range from a few thousand pounds for simple cases to more for complex ones. A licensed insolvency practitioner will provide a fixed fee quotation before you commit to any formal appointment.

Directors can appoint a liquidator through a shareholder resolution if the company is insolvent, provided a licensed practitioner agrees to act. Creditors can also petition the court for a compulsory liquidation, but a voluntary appointment is usually quicker and less costly for directors.

A straightforward creditors' voluntary liquidation typically takes between six and twelve months to complete. More complex cases with substantial assets, legal disputes, or missing records can take longer. The liquidator provides regular updates on progress and any delays encountered.

Once liquidation begins, the liquidator takes control and directors lose their powers to trade. However, the liquidator may continue trading for a short period to sell stock or complete contracts if this benefits creditors. Directors should not trade while insolvent before liquidation without professional advice.

Voluntary liquidation is initiated by shareholders through a resolution, usually leading to a creditors' voluntary liquidation. Compulsory liquidation is forced by a court order following a creditor's petition, often due to an unpaid judgment debt. The process, costs, and implications differ significantly between the two routes.

Yes, alternatives include a company voluntary arrangement to repay debts over time, administration to protect the business while restructuring, or a formal insolvency procedure like a pre-pack sale. A licensed practitioner can assess whether any of these options could rescue the business or achieve a better return for creditors.

Employees are automatically made redundant once a liquidator is appointed, unless the liquidator retains them to assist with trading. They can claim statutory redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund, but preferential claims are limited to certain amounts set by law.

No, you do not need a solicitor to appoint a licensed insolvency practitioner. You can approach a practitioner directly for a consultation. However, if your case involves complex legal issues such as director misconduct or disputed assets, you may wish to seek independent legal advice separately.

You must provide a statement of affairs listing assets, liabilities, and creditor details, along with statutory records, financial statements, and any relevant contracts. The liquidator also needs access to bank statements, ledgers, and correspondence to investigate the company's affairs and fulfil their statutory duties.