Professional Company LiquidatorsServing Wigan Businesses

Costs vary based on company complexity and asset value. Creditors' voluntary liquidation often requires a deposit covering initial fees, with the balance paid from realisations. For a simple solvent closure, a fixed fee may apply. Always obtain a written quote from a licensed insolvency practitioner.

Directors of a company that is insolvent (unable to pay debts as they fall due) can propose a creditors' voluntary liquidation. Shareholders can also pass a resolution to wind up a solvent company. A licensed insolvency practitioner must be appointed to act as liquidator.

The duration depends on the case. A straightforward creditors' voluntary liquidation might complete in six to twelve months, while complex cases with asset realisation or investigations can take longer. Your liquidator will provide a timeline after assessing your company's affairs.

You can continue trading until the winding-up order is made or the creditors' meeting is held, but you must act in the best interests of creditors. Trading beyond that point without permission may lead to personal liability for debts incurred.

Alternatives include a company voluntary arrangement (CVA) to repay debts over time, administration to protect the business from creditors while restructuring, or informal negotiations with creditors. A licensed professional can help you decide which route is most suitable.

Employees are automatically made redundant when a liquidation order is made. They may claim redundancy pay and other entitlements from the National Insurance Fund, but the liquidator will guide them on how to claim. The liquidator also ensures preferential claims are dealt with correctly.

Directors must cooperate fully with the liquidator, provide all company records and accounts, and disclose any transactions that may be void or preferences. Failure to comply can lead to personal liability, disqualification, or even criminal prosecution.

Yes, you can. If there are no assets to cover liquidation costs, the company may be wound up as an insolvent liquidation, but the liquidator's fees must be funded, often by the directors or a third party. Alternatively, a striking-off process might be more cost-effective if the company is not trading.

Voluntary liquidation is initiated by shareholders or directors, while compulsory liquidation is forced by a court order, usually following a creditor's petition. Voluntary liquidation is more common and allows more control, whereas compulsory liquidation involves statutory demands and court hearings.

Look for a licensed insolvency practitioner registered with a recognised professional body. Check their experience with small and medium-sized enterprises, read reviews, and ensure they provide a clear fee structure. Speak with a specialist listed on AccountingFirms to get trusted guidance.