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What Is The Difference Between A Business Liquidator And An Official Receiver?

Last updated: March 30, 2021

The quick answer

The Official Receiver is a civil servant employed by the Insolvency Service who deals with compulsory liquidations and bankruptcies. A business liquidator is an individual working in the private sector and is a Licensed Insolvency Practitioner.

In more detail

When the directors want to liquidate a company they will need  a Licensed Insolvency Practitioner like us.  Often directors will want to use a private sector business liquidator instead of the Official Receiver. An Official Receiver is funded by the government and will often have unlimited time and resources to investigate a failed company.

A company will end up with the Official Receiver as liquidator if it is forced into liquidation by creditors – this is known as a compulsory liquidation. This is different from a creditor’s voluntary liquidation which means the directors have chosen a private sector liquidator.



If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.

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Author: David Kirk - ACA FABRP
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David Kirk

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