Liquidation Advice

 

How does Liquidation work?

Voluntary Liquidation is a process of closing a limited company, bringing everything to a natural end. 

In essence, once you decide to put your company into Liquidation, a money pot is created (called a client account).  Into this will go all the money the company can raise.

Any money the company is owed is called in by the Liquidator. It is not unusual for the amount that comes in to be less than what is actually owed (you would be surprised how people won’t pay when they find out your company is proposing Voluntary Liquidation).

Any assets the company hold are sold. This can be to a Director of the company (if you want to go back into business), or it can be to an outside bidder. If the Director buys the assets, then it should be at market value (we would have a valuer tell you that amount).  If it’s to an outside bidder, then it is simply whoever bids the most money.

If there is a Debenture holder then we will usually discuss the sale of assets with them as they hold a legal charge over them.

Any priority creditors (employees and Liquidators) will be paid from the pot. The rest of the money is distributed between creditors relative to their debt level.

Because it draws a line under a problem, it stops things getting any worse. It is deemed better to pay creditors a little (or nothing) now, rather than holding on for a few months when the debt level has grown and paying them nothing then.

How can we help

Unlike other Liquidation Companies, we have structured ourselves and our Voluntary Liquidation Services in a way that benefits you the most. By Liquidating through us, we will:-

• Make sure your interests are looked after
• Make sure your Liquidation goes as smoothly as possible
• Deal with any problems before they arise
• Reduce the chances of needing us again
• Take as much pain as possible out of Voluntary Liquidation

Make a fresh start in Business today - call 0800 612 10 84 now.

Next Steps... What are the Pros & Cons of Voluntary Liquidation What happens if I don't Liquidate?How do I start the Company Liquidation process