When seeking liquidation advice you need a licensed insolvency practitioner to liquidate the company (or in some case’s a Court Order). It’s vital that you seek the appropriate advice before making any rushed decisions, most insolvency practitioners will provide a free consultation so speak with them to ensure you’re making the right choice. It is also best that once you have made the decision to liquidate a company to get on with it as soon as possible, in order to limit the financial loss and retain as many assets as possible.
Delaying can only make the position worse; for example for employees or creditors who do not know what they will get paid back so may continue legal action.
Liquidation stops all legal action and means the company can stop trading. Every claim for money owed can be fairly assessed and the assets realised (but sometimes there are none) and paid out in proportion.
Liquidation also stops creditors like HM Revenue and Customs, banks, landlords, suppliers from taking further legal action. It means you no longer have to produce annual accounts or VAT returns and your liability as a director to file forms at Companies House ends. It also means the government redundancy fund can kick in to pay out employees and directors.
Contact Kirks Insolvency for specific liquidation advice for your business. Want to know how long a company can be in liquidation?