Professional Company LiquidatorsServing Whitehouse Lane

The cost of liquidation varies based on the size and complexity of the company. Typically, fees range from a few thousand pounds for a simple creditors' voluntary liquidation to more for larger cases. A licensed practitioner will provide a fixed fee quote after an initial assessment, ensuring transparency with no hidden charges.

Eligibility depends on your company's financial position. If the company cannot pay its debts as they fall due, or its liabilities exceed its assets, then liquidation may be appropriate. A licensed insolvency practitioner will review your balance sheet and cash flow to determine whether formal liquidation is the correct route.

The process begins with a meeting of directors to pass a resolution for voluntary liquidation. Then, a statement of affairs is prepared, and a creditors' meeting is held to confirm the appointment of the liquidator. The liquidator then takes control of the company's assets, realises them, and distributes the proceeds to creditors.

The duration of a liquidation varies, but a simple creditors' voluntary liquidation can be completed within six to twelve months. More complex cases with substantial assets or disputes may take longer. The liquidator will provide an estimated timeline during the initial consultation, based on the specific circumstances of the company.

Once a liquidator is appointed, trading must cease unless the liquidator decides it is beneficial to continue for a short period to preserve value. As a director, you lose control of the company's affairs, and the liquidator takes over management. Continuing to trade without approval could lead to personal liability.

Yes, alternatives include a company voluntary arrangement (CVA), administration, or informal restructuring with creditors. A CVA allows the company to repay debts over a period whilst continuing to trade. Administration provides a moratorium from creditors, giving time to rescue the business as a going concern. A licensed practitioner can advise on which option is viable.

When a company goes into liquidation, employees are made redundant automatically. They may be entitled to claim redundancy pay, notice pay, and holiday pay from the National Insurance Fund, which is a government scheme. The liquidator will provide the necessary documentation to help employees make these claims.

Generally, directors are not personally liable for company debts if they have acted in good faith and complied with their duties. However, if there has been wrongful trading, fraudulent activity, or personal guarantees, directors may be held liable. A licensed insolvency practitioner can assess whether any such issues exist in your case.

Yes, it is possible to liquidate a company with no assets, but the process may be more straightforward. If there are no assets to distribute, creditors may not receive any payment. The liquidator's fees may be funded by the director or from the company's remaining funds, and a licensed practitioner can guide you through the process.

You will need to provide the company's financial records, including bank statements, accounting records, tax returns, and a list of creditors and assets. A statement of affairs must be prepared, detailing the company's financial position. The liquidator will also require details of any director loans, guarantees, or transactions that may be scrutinised.