Company Liquidators in Upton-st-leonardsExpert Guidance and Support

The cost of a creditors' voluntary liquidation (CVL) varies depending on the complexity of the company's affairs, but typically ranges from £4,000 to £8,000 plus VAT and disbursements. The fee is paid from the company's assets, not from your personal pocket, and is agreed upfront before any work begins.

Your company is eligible for a creditors' voluntary liquidation if it is insolvent, meaning it cannot pay its debts as they fall due, or its liabilities exceed its assets. You must also have the support of at least 75% of shareholders by value to pass a resolution to wind up the company voluntarily.

The process begins with a meeting of directors to pass a resolution that the company cannot continue trading. Then, you must convene a shareholders' meeting to pass a special resolution for voluntary winding up. Finally, a meeting of creditors is held to confirm the appointment of the liquidator.

The entire process typically takes between 6 and 12 months, depending on the complexity of the company's affairs. The initial meetings and appointment of the liquidator can be completed within 2 to 4 weeks. The liquidator then realises assets, investigates the company's affairs, and distributes funds to creditors.

Yes, there are several alternatives, including a Company Voluntary Arrangement (CVA) to repay debts over time, a formal restructuring plan, or negotiating informal payment arrangements with creditors. A licensed insolvency practitioner can help you assess which option is best suited to your company's circumstances.

In a creditors' voluntary liquidation, employees are made redundant immediately upon the liquidator's appointment. They may be entitled to claim redundancy pay, unpaid wages, and holiday pay from the National Insurance Fund. The liquidator will provide the necessary forms and guidance to employees.

You may be able to buy back certain assets from the liquidator, such as vehicles or equipment, at market value. However, you must pay for them from your own funds, and the purchase must be approved by the creditors' committee or the Secretary of State to ensure it is fair.

Directors have a duty to cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that may be considered wrongful trading or preferences. Failure to comply can result in personal liability for company debts or disqualification as a director.

Generally, no, because a company is a separate legal entity. However, if you have given personal guarantees for business loans or leases, creditors can pursue you for those debts. Also, if wrongful trading is proven, you may be required to contribute to the company's assets.

You should look for a practitioner who is licensed by a recognised professional body, such as the Insolvency Practitioners Association or the Institute of Chartered Accountants. Ensure they have experience with companies similar to yours, and check their credentials and reviews before making a decision.